The most evil, fiendish machine of destruction ever created has been turned on. I call it The Beast.
The Beast is not an atomic bomb. It isn’t a missile or a deadly submarine with enough nukes to end life as we know it.
It is a computer. The fastest, most powerful ever made. Goldman Sachs owns and runs it. It is stealing your wealth day and night.
The Beast is so secret only a handful of people have actually seen it. The picture above is an educated guess of what it looks like. I based it on talks I’ve had with people who know some of the components of this market manipulation system from hell.
No one understands everything The Beast does. We do know it is connected, directly or indirectly, to every information system known to man. Every database. It is so fast, it runs circles around every other computer in the world. It has the power to manipulate (for a time) every market in the world.
Soon this system, or one like it, could be used to control most every aspect of your life.
Right now it is most dangerous for you, me and every American investor: because it is tied directly to the New York Stock Exchange computers. In fact, it is connected to every exchange computer in the world, be it stocks, commodities or bonds. It lets Goldman Sachs learn every stock order and commodity order that is placed on the NYSE or any other exchange – BEFORE the exchange executes it – and then jump in front of the market. This is called FRONT RUNNING.
Every time you, your mutual fund or retirement plan buys a stock, bond or commodity, you pay more than you should have. Goldman gets there first. Thanks to the power of The Beast. They bid up the price you paid. They gouge you.
In some cases, The Beast can freeze you out. Or worse, bust you out of your positions, a big loser. Many small investors learned this the hard way, in the May 6th “flash crash” bloodbath.
It’s legalized theft, on a mass scale. It is the reason Goldman made nearly $30 billion in their proprietary trading these past few years — while every one else lost money and the U.S. economy trashed around in the worst depression since the 1930s.
The Beast is located in a steel, nuclear-proof vault. Ten stories below street level. In the same room as the NYSE’s own computers. Wired directly into them, in fact. Most of the time this black box is a license for Goldman to print money. It never lost!
But on Thursday, May 6, the scheme backfired. Goldman’s super-computer – the Beast — turned the regional Greek downturn into a global freefall. The Dow plunged 1000 points in two hours.
It forced an emergency bailout by the U.S. and members of the European Union: $1 trillion for Greece. Something they all said they would never do.
And now Spain, Portugal, Italy and England are all waiting in the wings, panting for their own bailouts. These will be many, many times greater than Greece’s. The fallout will be many times worse, too…
What Really Happened on
Flash Crash Thursday, May 6
Thursday, May 6, an event took place that struck fear and terror in the hearts of everyone who understood what they saw.
U.S. stocks had their biggest one-day meltdown in history. 1000 points in two hours. Never had stocks fallen so far, so fast. Not even during the crash of 2008, which was the worst plunge since the Great Depression.
One major stock, Accenture, fell from $40 a share to 1 cent — in 30 minutes. Unprecedented. But it will not be the last of these meltdowns. This is the first of many crises we will soon see.
As usual, the sold-out Wall Street press went into overdrive. They quickly pooh-pooh’ed the stark warning of what’s to come.
Don’t let them fool you.
The Greek crisis is a relatively minor event, compared to what’s in store. But even little ole Greece sent the stock market into a tailspin. We warned about this, months ahead of time, in our “Dead Meat/PIGIES” special report.
Now the market is starting to catch up to the fact that the financial crisis is wiping out entire countries. Investors and traders saw the rioting in Greek streets. Panic struck the world’s markets.
Just days earlier, the S&P 500 was enjoying an 80% rally-back, from the lows last March. The Dow had soared from 6700 to 11,300. The biggest put-up, fixed market ever.
“Come on in, the water’s fine,” Wall Street promised the masses. “Happy days are here again.” So the suckers bought into another pre-planned, pre-packaged, computer-orchestrated disaster.
Flash Crash Thursday, every major exchange took catastrophic hits. Instantly, the media blamed it on a rookie trader’s typing mistake.
BULL. This was NOT a Fat-Fingers error. It was not an accident. It sure wasn’t a one-time event, either.
You saw Wall Street’s mindless computer programs backfire — and turn a regional downswing into a full-blown global panic.
You saw Wall Street’s biggest “screw-you” scam ever blow up in its face. You saw The Beast rear its ugly head, turn on its makers, and nearly cause a total meltdown in U.S. stocks. One that is still reverberating around the world.
Most of all, you saw a sneak preview of what’s coming. Because tiny Greece is not the only country that needs a bailout. Giants Spain and Italy also need bailouts. Portugal, Ireland and even England will need bailouts.
Imagine the market chaos when Italy and Spain come begging for ten trillion dollars (not a trillion like Greece). When the IMF cuts the pay of every Italian and Spaniard by 25%… slashes their retirements in half… and reduces their beloved cradle-to-grave government handouts overnight.
I’ll tell you what will happen. The riots in Greece will look like two school girls fighting over a Barbie doll. And I promise you, those wipe-outs are coming. Real soon now.
Markets around the world are starting to plunge. Soon they will crash at lightning computer speed. We are on the verge of the first computer-led stock market panic and sell-off.
But here’s something Wall Street doesn’t want you to know. There is a little-known “glitch” in their vast system of computerized thievery. This glitch could let small investors make literally MILLIONS of dollars — when markets tumble like they did on May 6.
And this glitch — this vulnerability — has the potential to make YOU very, very rich.
In effect, this glitch allows small investors to trade like billion-dollar international hedge funds — only with strictly limited risk.
This is a once-in-a-hundred-years opportunity to cash in on the sheer greed of Wall Street. To turn the tables on companies like Goldman, who have been robbing you for so many years.
Let me explain…
Wall Street and the U.S. government
tried to shut me up. They do NOT want
you to learn about this scam
My name is Nick Guarino. I’m the editor of the Wall Street Insiders. WSI is perhaps the most radical and contrarian financial newsletter now publishing. And, forgive me, the most right in predicting the mess we are in.
Perhaps you have heard of me. Wall Street hates my guts. So does the U.S. government.
Since 1992, they’ve done everything in their power to silence me. Including seizing my bank accounts, confiscating computer equipment, and getting a Federal judge to actually order me to stop publishing a financial newsletter. (In flagrant violation of the First Amendment. It has since been lifted.)
The reason they tried to silence me: I tell small investors like you the way Wall Street really works -– and how to use that knowledge to protect yourself and potentially make MILLIONS in profits.
While the regulators at the Securities & Exchange Commission were spending their days watching porn videos on the Internet, I accurately predicted…
… the 2008-2009 stock market wipeout that vaporized 50% or more of Americans’ life savings…
… the ongoing derivatives Ponzi scheme…
… the real estate crash that is still going on…
… the pullback in oil prices from $150 a barrel to below $80 a barrel…
… the 2000-2001 “tech wreck” and dot-com wipeout…
… the skyrocketing surge in gold prices from $260 an ounce to above $1,000 an ounce… and, incredibly,
… the impeachment of President Bill Clinton and the Whitewater fiasco…
… as well as dozens of other events…
After my last tussle with the U.S. government, in 2005, it took me four years and nearly $10 million in legal fees and fines to begin publishing again.
But now I’m back… and I am telling the world about another bombshell that will soon shock the world to its core…
The Beast: of Wall Street’s many crimes,
this one will enrage you the most
You’ve heard how brokers “churn” accounts, and push money-losing trades just for the commissions? Or get their customers to buy loser investments they are desperate to sell?
Well, Wall Street investment banks like Goldman Sachs take that to a whole new level.
In the first quarter of 2010, Goldman did not have a single losing trading day. Not one. This is unprecedented. In fact, it is impossible — if you are really trading. But Goldman is not trading.
They are playing a rigged game. They are the house. They get to see everyone else’s cards, before they bet. There is no way they can lose — until D day comes.
All because of The Beast and HFT (High Frequency or black-box Trading). It should be illegal. Instead, the exchanges have made special deals with Goldman Sachs and a few other mega-bankers, to give them the ultimate trading edge.
These deals are a license for Goldman to print money: by stealing from you and every other investor. i.e. anyone who trades or owns stocks, mutual funds, even futures and options.
You, your pension fund, your IRA — everyone who trades — has to go to the floor of the exchange to buy or sell stocks in the spreads. Not Goldman. They bypass all that. Their computer -– The Beast -– is connected directly to the NYSE computers. In fact, it is located in the same room with the NYSE’s tired, old, slow machine.
That means Goldman can make trades directly with the NYSE computer. Before everyone else. With zero delays. The computer can trade trillions of dollars and billions of positions in micro seconds. All at extreme discounts. Less than a penny a share.
Goldman pays hundreds of millions a year for this privilege. It allows them to make guaranteed billions, as they screw the market.
A few years ago, HFTs only accounted for one-third of trading. Now they make up 70%-to-80% of all trades on the exchanges. They are why the markets have soared these past two years.
Goldman and its billionaire hedge fund buddies say they are “giving liquidity to the market.” Bull!
The market had no liquidity problems back in the 1970s, when it traded 100 million shares a day. It sure doesn’t have liquidity problems now, when 3 billion shares a day are traded.
Can computers predict the future with 100%
accuracy? Goldman says yes. History says no
…and I believe history.
Reality is over two billion shares trade by the HFTs. Every day. They are executed with NO human supervision at all. None.
These super-computers use the same flawed economic models (known as Black-Scholes) that have wiped out everyone who has used them. The problem is simple.
Humans make the mathematical models. People program the computers. They try to think of every economic/financial event under the sun. They try to plan for every possible contingency. They play God with your money.
But they are not God. They can’t conceive of all the variables that enter the global financial equations. It’s impossible. No one can.
They ALWAYS miss the “unknown unknowns.” The freak events that make up real life. Terrorist strikes. Hurricanes. Rioting Greeks. Market downturns. Bank wipeouts. North Korea attacking South Korea. The endless bubbles bursting, in real estate and high tech.
That means their precious computer models go tragically, fatally wrong. They result in colossal wipeouts. They have proved this over and over.
One example: computer models brought on the huge U.S. real estate bubble. They said housing was the ideal long-term investment for the little guy. It would keep making profits for you, forever. WRONG.
They failed to take into account what happens when people can no longer pay their mortgages. Even with two incomes. This led to the housing crash. Trillions worth of derivatives went bust. Trillions more are still going bust.
All because they did not factor in a key fact of life. One I warned about for the last ten years.
They assumed real estate prices could never go down. Not for the entire real estate market. Remember the old cliché: “they aren’t making any more of the stuff.” So real estate will keep going up in price. Their back-dated models told them that.
Sure, they said, we have had real estate downturns. New York City in the 1970s. Texas in the 80s. Colorado and Florida in the 1990s.
But their models showed these wipeouts were regional only. They did not last long. I heard them call them “buying opportunities.” The national market, they said, still went up.
So their solution was simple. Spread the risk over all real estate markets. The rising markets would more than make up for the occasional, local down moves.
This is why institutions kept pouring money into real estate after 911. It’s why U.S. housing values soared, in the biggest bubble ever.
But God is God. People who think they are smarter than everyone are pompous pricks. God wins. Pompous pricks always lose big-time in the end.
The real estate wipeout — the financial collapse we are in — is based on three big mistakes.
One, the mathematical geniuses who think their computer programs perfectly model the future. They don’t.
Two, the greedy handlers who hired the mathematicians to justify their own crooked schemes. The masters of the universe who run Goldman and Wall Street. They play craps with the world’s money.
Three, the masses. Sadly, they are clueless. They trust Wall Street. They do anything the media and their brokers tell them. They risk everything, to chase slightly higher yields. Or get in on the latest bubble Wall Street is blowing.
Well, what do you know? The one thing took place, that Wall Street’s super-computers could never see. It turns out real estate doesn’t always go up. It can go down everywhere, all at the same time, and stay down for decades. Bubbles burst. In new, unexpected ways that catch the computers by surprise.
The models didn’t see any of that. They didn’t see that their trading made too many loans -– pumped too much money — into real estate. More money than the markets could efficiently use.
This created the bubble. People paid way, way too much for their houses. They borrowed far more than the houses were really worth. All because the computer models said real estate values always go up.
The models also said derivatives debt was safe. It would “manage risk.” Keep the economy growing and the bubbles blowing.
100% false. Derivatives collapsed. So did the real estate they financed. Bringing down the entire house of cards.
Everyone who bought into this b.s. is screwed to the wall. The biggest investment they will make in their lives -– their home -– is worth a fraction what it was.
Something even uglier and more diabolical
is at work in today’s stock market
Wall Street’s game is simple. Create off-exchange derivatives, that shift risk to the unknowing…hide losses…and show profits that are not really there. Institutionalized fraud at the highest level.
Derivatives are so complicated, few men alive understand them. Even fewer know how they work. This is not because people are stupid. It’s because by design derivatives are made to be too complicated to understand.
I am a simple man. So complicated things don’t befuddle me. I am befuddled already.
And because I have a simple mind, I reduce things to their simplest level. That’s where my fundamental analysis comes from. That has held me in good stead for 30 years.
Let me tell you what 99.9% of the players in the game don’t understand. And the 0.1% who do, will never tell you.
The Greek crisis is just one of many sovereign debt crises the world over. As our recent Wall Street Insider issues have shown, it will soon hit Italy, Spain, Portugal, England, China…and finally the U.S.
This is not complicated. Governments the world over went on a wild debt spree. For decades. They borrowed untold trillions. All to pay for programs that bought off the voters. That is how they stayed in power.
Now there is no money left to borrow. Their credit cards are maxed out. The bankers can’t scheme any more cash. The countries are broke. And the loan sharks are banging on their doors. It’s really as simple as that.
The U.S. and Europe cannot inflate
their way out of this crisis
This is not an inflationary, print-money crisis, like you have seen in the past. These crises are deflationary. For a simple reason. In modern times, currencies float freely. Markets set their values.
Not so in the past. Back then, currencies were fixed. Governments set the value. And they saw to it that their currencies did NOT lose value.
That let the governments print money and inflate their debts away. Without harming the value of their currency.
Greece used to do that. Today is a different story. Greece is a member (for now) of the EU. It can’t print its problems away. It is BORROWING money, not printing it. Greece is cutting pay, benefits, and retirements. It is DEFLATING.
In fact, it’s far worse. Greece is in a depression. As is most of the world.
Remember, currencies now change value every day. Every minute. And markets are mightier than government’s puny interventions. The days when government could pull its inflation fixes and print money are over.
News flash: the U.S. will not print money. It won’t inflate away its debt crisis. Neither will Europe, Japan or England.
They can’t. The minute they try that, their currencies get trashed. People won’t buy the mountain of debt these nations so desperately need. Worse, the world will dump their currencies. That will destroy their economies.
So how will America solve its debt crisis? Simple. It will get money the old-fashioned way. It will borrow more — and tax the hell out of its citizens!
The U.S. will go even deeper into debt, making whatever devil’s bargains it has to, to stay afloat. Obama has already begun this. He has raised taxes. He has sent the deficit soaring, from $162 billion in 2007 to $1.4 trillion in 2009 and 2010.
Folks, you ain’t seen nothing yet. As Obama likes to say, he is “just getting started.”
The U.S. government will drastically cut public services. It will impoverish the American middle class. Taxes will devastate you.
Other developed nations will do the same thing. They have no choice. They are just as trapped as we are.
Of course, cutting pay, service and benefits has a name. It’s called a depression. A deflation. The opposite of inflation.
The masses do not understand deflation. They have never lived through the ravages of a depression. All they have known, their whole lives, is growth and inflation. That is what they think is coming.
They are dead wrong. Deflation is coming. A deeper, darker depression is coming.
Why do you think the U.S. CPI just fell, year over year, for the first time since World War II?
Why is M3 -– the best gauge of money supply -– plunging at the same rate as during the 1930s depression?
I’ll tell you why: The world is in a deflation. It will wipe out the masses. They will never know what hit them.
And that brings me back to Goldman’s secret wealth-destroying weapon, The Beast…
On Thursday May 6, the markets
caught a glimpse of the future. They
felt the cold chill of what lies ahead
Sooner than anyone thought possible, investors started throwing in the towel. They realized the rally in stocks is just about over. There’s no recovery. The sovereign debt wipeout is beginning.
Before Flash Crash Thursday, the market had dropped 100-to-200 points every day that week. Thursday started as more of the same. Then Goldman Sachs’ high-frequency trading system from hell — The Beast — kicked in.
High-frequency trading is just a polite term for front-running. It lets Wall Street insiders trade before their customers do. Almost no one understands this. Anyone who did would never set foot in the Wall Street casino again, except in very smart, sophisticated ways.
Here’s how it works.
As I told you, Wall Street computers are directly connected to the exchanges’ computers. So firms like Goldman learn all orders that come into the NYSE and NASDAQ — all the exchanges — before they get executed. All buy orders. All sell orders.
That lets them place their own orders, for the same stocks (or options or commodities), ahead of their customers. They get there micro-seconds before everyone else. Which makes all the difference.
Say Goldman’s computer sees an order come in to the exchange, to sell a large block of IBM shares. Goldman rushes in a few micro-seconds ahead of time. Again, it can do this because it is hard wired directly into the exchange computers…and its computer is MUCH faster than anyone else’s.
Goldman sells that same stock first. Its selling takes the market lower. So the original seller gets a lower price. Goldman pockets the difference.
Same thing when Goldman sees buy orders come in. It buys ahead. That forces the market higher, before the legitimate trade is executed. Buyers must pay a higher price.
Each week, Goldman front-runs billions of shares. That is how they made nearly $30 billion in profits the past few years -– even though the U.S. economy is in a deep recession, and normal investment banking activities (IPOs, mergers & acquisitions) have fallen into the crapper.
It’s like playing poker, when you know the cards of all your opponents -– but they don’t know yours. Goldman knows the cards of every retirement fund…mutual fund…institution and individual who trades stocks, commodities and bonds.
Remember, everyone else is not connected to the exchange computers, with their own personal multi-billion dollar super computer. Their trading systems work slower. That puts them at a fatal disadvantage.
Goldman’s computer knows all trades, stops, buy and sell orders people are going to make — BEFORE THEY MAKE THEM. It jumps ahead of them, and “scalps” them. That is Wall Street’s own term.
And this computerized front-running, this “scalping,” led to the chaos on Flash Crash Thursday…
How to turn a Greek riot
into a global stock crash
The Greek riots were broadcast around the world. Investors were scared witless. This is not what Wall Street told them would happen.
People started to figure out there is no recovery. Huge amounts of sell orders hit the exchanges, all at once.
Goldman Sachs’ brilliant computer models saw those sell orders. Its black box computers did their job. Without human knowledge or intervention. In microseconds they jumped in ahead of the market, and put in more sell orders. Goldman was making a killing.
But two problems came up. First, sell orders kept coming in. From all around the world. The sells greatly outweighed the buys.
The NYSE’s slow-moving computer saw this huge imbalance of sell orders. It delayed the processing of all trades. By 90 seconds. That is, every order was held up for 90 seconds.
This supposedly was to give the market makers time to check for errors. (In reality it’s to let insiders cover their asses — by dumping falling shares of stock first.)
The Beast and the other HFT computers could not place trades on the NYSE fast enough. Remember, they make decisions every micro-second. For them, a minute and a half is an eternity.
But even more selling pressure was building up: the sell orders kept pouring in. Goldman’s computer knew about these orders before the NYSE did. It is both connected to the exchange computers and far faster than they are.
So the computer did what it is programmed to do. It started selling on other stock exchanges. It sold on the futures and options markets as well.
These markets did not delay sales. They were deluged with orders to sell. Prices fell even faster than on the NYSE. This started the vicious round of selling world-wide. No exchange, no market, was immune.
A huge backlog of sell orders built up. It accelerated by the micro-second.
You literally saw stock market traders stampede for the burning exchange doors. The whole thing quickly got out of control. Because there were no buyers!
And the computer systems from hell did more of the unthinkable. Seeing prices fall, they kept selling more, bidding the market down. Down, down, down she goes. Where she stops, nobody knows.
Computers led the market meltdown. A meltdown like nothing seen before. But it is only the first. Soon the collapses will be too big to stop. Even temporary, partial reversals will not last.
Please understand. Wall Street has bet all your money -– our entire financial system -– on their computer models. On the bizarre belief that they can correctly predict the future, day in and day out, without error. Do you see how crazy this is?
Stop-loss orders screwed
the little guy even more
On Flash-Crash Thursday, things kept getting worse. Many people trade (foolishly) with stop-loss orders. Stops are supposed to limit losses. But in the new world of The Beast, they only make your losses bigger.
Why? Because The Beast is programmed to find the stops… and then bust the small trader out of the market. With massive losses.
Contrary to popular belief, stop-loss orders do not hold your broker to a set price. All he has to do is get the “best possible” price. That could be far lower than you expect.
In the market chaos, stocks crashed right through the stop prices. The usual Wall Street victims could not get out at their stop-loss prices. The little guy got screwed. Even more than usual.
Many people were forced out at the lows of the day. Yet the market closed well above the original stop price. In some cases, the average guy lost everything. This time by The Beast. Think of the flash crash as The Beast’s coming-out party.
One stock was selling for $42 a share early Thursday. It plunged straight down to $.04. That’s what the average guy, with stops, got. Four cents a share. He lost 99% of his money.
Later that same day, this stock bounced back. It closed over $41. Who do you think bought these shares at the ridiculously cheap price of a few pennies a share? And then watched it shoot back up to over $41? None other than Goldman Sachs’ HFT computer trader, The BEAST.
In essence, Goldman & Co stole these people’s stock. No humans involved in any way.
This is why trading with stops is a suckers’ game. When you need them the most, they will screw you to the wall. It is why you need to use carefully-selected trading instruments that are Beast-proof.
Not surprisingly, the regulators are still scratching their heads, looking for someone to blame. Of course, they are careful not to piss off their future bosses… the people they will work for when they leave government service. Do you know that many key financial/economic positions in government are held by “former” Goldman partners?
By day’s end of the Flash Crash, the market manipulators were able to regroup. They brought the market back up some. The Dow still lost nearly 350 points.
But here’s what you must understand. You just got a tiny, graphic, demonstration of what’s to come.
First, tiny Greece (population: 11.2 million) broke the back of the insane stock market rally. That led to the biggest stock market meltdown ever. And it is just the start. The first run at what will be the worst stock market crash in history.
As I told you, giants Spain and Italy owe hundreds of times more than Greece does. So do England and Portugal. They are too big to bail out. They will be the next to wipe out.
Their sovereign debt is tied to every economy the world over. And they are more broke than GM, Chrysler, AIG, Lehman Brothers and Merrill Lynch were -– all put together.
What’s more, our major banks hold their bad paper. En masse. Their collapses will start a financial chain reaction, that cannot be stopped.
And then there’s the biggest debtor of all. The U.S. We will need more money than anyone. By huge amounts, for years to come.
Printing our way out of this is not an option. We are talking a depression, worse than any of modern times.
People will lose their savings. Their retirements. Their homes, work, and bank deposits. People who manage to hang onto their jobs will see their pay severely cut.
These are all deflationary phenomena. They are taking place in front of your eyes. God help the world.
May 6′s mini-crash demonstrated a second thing. The one good thing to come from all this. The recommendations I made performed beautifully. Like clockwork, in fact.
They proved our trades work in a crash. Just like they were designed to do. They also showed our trades have the potential to make a big pot of money. Even while everyone else is wiping out.
Virtually every trade around the globe fell hard. But ours went straight up, other than a few gold ETF’s. (And they went up a few days later.) We are positioned perfectly for the next phase of this wipeout.
The special instruments I selected are relatively immune from The Beast. From high-frequency trading. You get great leverage, but no margin calls. No expiration dates or time limits. They do not trade like futures or options. Because they are stocks.
Our trades were completely liquid. No one got busted out. Just profits rolling in with every down tick. And it’s been a party nearly every day since flash-crash Thursday, as markets on balance continue to plunge….
We are sitting there now, getting even more moves in our favor. As the global market and sovereign debt wipeout continues. And the best is yet to come…
How Wall Street Rigs the Stock Market Casino
I’ve said this for years, but no one ever believed me until recently.
The stock market is rigged. Crooked to the core. The big trading firms play with loaded dice.
But that does not mean you can’t beat them at their own game. If fact it is moments like these — with panic in the street and Wall Street in desperation, screwing everyone in sight – that the serious money can be made.
The stock market has always been a rigged game. But now a new super-computer has turned a sleazy criminal enterprise into global fraud. This doomsday device will end up destroying its own creators.
High-Frequency-Trading (HFT) super-computers, like the Beast, are able to find out the highest price traders will pay in a millisecond. They then extort that full amount millions of times over, to maximize profits. This has nothing to do with efficiency or innovation. It is about stealing as much of your money as they can.
The way they carry off this scam is beyond belief. The deep-pocket bank/brokerages actually pay the NYSE and the NASDAQ hundreds of millions of dollars each year. In return, the NYSE and NASDAQ connect them to their own computers ON THE FLOOR OF THE EXCHANGES. This lets them shave off critical milliseconds — after they’ve gotten a first peak at incoming trades.
It boils down to this. HFT lets Goldman see other people’s orders ahead of time. Before the NYSE or NASDAQ executes these trades. Goldman’s supercomputers are so fast, they can then trade in front of the rest of the market.
It’s called front-running. It goes on every day right under the nose of SEC head Mary Schapiro. They know it and they let it happen!
“Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed,” said the New York Times. “High-frequency trading is one answer. High-frequency trading systems are so fast they can outsmart or outrun other investors, humans and computers alike.”
“This kind of unfair access seriously compromises the integrity of our markets and creates a two-tiered system where a privileged group of insiders receives preferential treatment, depriving others of a fair price for their transactions,” wrote Sen. Charles Schumer to the SEC.
HFT computers learn every sell order that comes in. Every buy order. Because they are faster than all other computers, they front-run the market.
Goldman Sachs disclosed recently that it had 46 “$100 million trading days” in the second quarter of 2009. A record number. No one has done so well in the history of trading. How is this possible?
The U.S. economy is in its biggest downturn since the Great Depression. Banks and brokers are hiding more losses than ever on their derivatives books. Merger and acquisition volume is way down. So are IPO’s. So it seems bizarre that investment banks like Goldman had record quarters.
Now you know the secret. They are skimming the cream off of U.S. trading activity. Billions of times each day.
Ordinarily, a buyer and a seller show up on the floor. A specialist determines a price that satisfies buyer and seller. That’s the market price. If there are too many sellers and not enough buyers, the specialist lowers the price until buyers and sellers agree.
Goldman throws a fatal monkey wrench into that. Before the market price can be made, Goldman electronically floods the specialist with thousands and thousands of orders. In essence, they commandeer the trade. That lets them siphon off nickels and dimes for themselves.
Until a few years ago, Goldman was just an investment bank. But in 2008 Goldman magically transformed itself into a bank holding company. One of the benefits of having ex-Goldman executives fill nearly every key economic/financial position in government. They wired the game with their own people in key government jobs. Yet Goldman still remained an investment bank.
Now Goldman can borrow massive amounts of money from the Fed -– at virtually 0% interest. The lowest rates in the world. With The Beast, it uses this money to front-run every stock that trades. Simply because it pays the exchanges to let it see everyone’s trades, before they can make them.
So you understand: Goldman gets to speculate with your tax money, and pay nothing for that money. They get to rig the game against you and steal from you. If, or better put when they lose, government will bail them out.
Front running with HFT has become Wall Street’s principal business. The primary force driving most volume on exchanges. They are losing their asses on their derivatives. But The Beast lets Wall Street manipulate markets – both for financial and political gain.
How? Because HFTs operate on a massive scale. They account for 70%-to-80% of all trades. THEY set the overall market direction. Without any fundamental or even technical reason. And they sucker retail investors into a rising market. Even though it has nothing to do with “green shoots” or the false “recovery.”
High-frequency trading explains why activity on the nation’s stock exchanges has exploded. Average daily volume has nearly tripled since 2005, according to data from the NYSE. A handful of high-frequency traders (Goldman Sachs) now account for well more than half of all trades.
“This is where all the money is getting made,” said William H. Donaldson, former chairman and chief executive of the New York Stock Exchange and today an adviser to a big hedge fund. “If an individual investor doesn’t have the means to keep up, they’re at a huge disadvantage.”
IMF just trapped the Leopard (Greece)
Soon they will trap the Eagle (Italy)…the Grand Old Lion (England)…
…and finally their biggest prey of all.
The world’s formerly invincible 2-ton gorilla:
The time I always knew was coming is finally upon us. The global depression has just taken its first victim, from among the world’s civilized countries:
Greece, “the Leopard,” only makes up 2.16% of EU GDP. Yet the IMF just gave this tiny economy an emergency bailout of $1 trillion. The biggest bailout of any country in world history.
(Yes, they say the fund is for other nations, too. But who are they kidding? It’s barely enough for Greece this year. The others will need tens of trillions. More on this a bit later.)
To put Greece’s bailout in perspective, the old record was set in 1997, during the Asian crisis. South Korea then had over four times as many people as Greece does now. Nearly triple its GDP.
Yet S. Korea got a bailout of ‘just’ $57 billion. One seventeenth (1/17th) as much as Greece!
S. Korea’s bailout came with no strings attached. No tough terms. The Greek bailout is exactly the opposite.
Greece’s government had to give up all control — all sovereign decision-making — over its economy. Its nation is now run by a consortium of the world’s most powerful bankers.
(No, not the ones you see on TV biz shows. They are the real power-brokers, whose names you will never know, and whose faces you will never see. More on this in just a bit.)
As I’ll show you, that has earth-shattering consequences. Not just for Greece. But for you, me and every American.
Because Greece is not the only nation deep in debt. So is much of Europe… the Asian tigers… Latin America… Australia… and especially the U.S.
You just got a sneak preview of what awaits every big debtor country. Including Spain, that is next in line…and including us.
Yes, America. Our nation -– our lives -– are about to turn upside down. In some very ugly ways.
There are four key things you need to know about the Greek bailout, and what it really means for us…
Greece no longer runs itself. The EU, World
Bank, IMF and power brokers behind them do
To get their emergency bailout, the Greeks were forced to take a 25% cutback. Across the board, in every key economic measure.
Pay. Government services. Health care. Pensions. Vacations. Everything took a huge hit.
Actually, I take that back. One thing did not go down. Taxes. To pay for their new austerity program, Greek taxes will soar. Each person will have to give up to 50% of his pay. (America are you listening? You’re next.)
Big Brother (their socialist government) used to look after the Greeks. From cradle to grave. Overnight they were turned into wage slaves. They will live the rest of their lives in poverty.
Socialism will be replaced by economic totalitarianism. As always. Eventually Greece will be thrown out of the EU.
The Greek people sure aren’t getting any bailouts. They owe as much individually as before.
But now they will make far less money. Their retirements are a pittance. Their home values are crashing. Simply put, they will go from prosperous to poor.
From this moment on, Greece’s elected officials are powerless. Their government rules in name only. The world’s bankers call the shots. They run the show. As they are about to in every debt-ridden economy the world over.
No surprise that rioting has already started in the streets. But you ain’t seen anything yet. Greece is just the opening blow, in a bloodless coup that will soon take place the world over…
Part two: sovereign bailouts/IMF takeovers
will spread around the world
Greece was first. Soon Spain and Italy will come to the table, for their bailouts.
Spain and Italy are in far worse shape than Greece. They don’t just need hundreds of billions. They need many trillions.
They, too, will surrender their national sovereignty to the world’s secret bankers. Through the offices of the IMF.
England will follow shortly, hat in hand. It needs at least ten trillion.
The English will have no choice. The ultimate nanny state is dead broke. They will agree to the same terms Greece did. Their elected leaders will become mere figureheads. Their people, debt slaves.
China is a mess. Its economy is crashing. (Our 58-page April issue -– titled “China Doll” -– shows how the Chinese “miracle” is in fact the Chinese nightmare. We’ll be glad to send it to new subscribers free, with our compliments.) Without more bailouts, China cannot survive.
And then the truly big game will fall in the bankers’ sights. The country that owes vastly more money than any other in history. That has more assets, more wealth, than any other. The United States.
When I talk about “the world’s bankers,” I don’t mean Citigroup. Or Wells Fargo. Or even Goldman Sachs.
I’m talking about the real movers and shakers. The people behind the IMF and World Bank. The power brokers who control organizations like the UN and the EU. They will gain control of the world’s free nations, without firing a shot.
Yes, the EU is one of their key tools. Don’t let the screams about its supposed “breakup” fool you. The EU is in great shape. It has virtually no debt. It is playing this crisis like a fine Stradivarius.
The EU did not directly loan Greece one red cent. Germany loaned Greece money. Britain loaned them money. Even the U.S. loaned them money, through the IMF.
The EU did not put up a thing. Yet it still took control of Greece. Just like it will take control of Spain, Italy, Portugal and England.
The U.S. government and citizens have the biggest debt of any nation on the planet. Hundreds of trillions of dollars. We are the biggest fish on the IMF/EU/UN hook. Even America will have to come to the IMF, begging hat in hand for a massive bailout.
Won’t Americans be surprised. They are counting on government to turn on the printing presses. They expect inflation to bring back their home values. To make their mutual funds bounce back to new record highs, and save their asses.
Unfortunately, the guys who set this trap are much smarter than the average bear. The tune we are dancing to is no longer inflation. It’s the opposite. DEFLATION.
Greece proves it. Falling money supply in major nations around the globe (the U.S., Japan, Germany, England) proves it.
The EU, the World Bank, the IMF come in. They say, “You must bite the bullet. Everyone makes less. Everyone has less and pays more taxes. You can’t inflate. You will DEFLATE.”
Do you see? Americans will not get the inflationary reprieve they are dreaming of and planning for. Instead of the dollar falling, it will become worth more. That is already happening. For the past year, the dollar has soared against most major currencies.
Deflation, the scourge of our time, will plunge stocks to their lowest levels in 25 years. It will drive home prices down to values not seen since the last Great Depression.
It will raise U.S. unemployment to rates suffered by 3rd world countries. It will bring U.S. wages in line with the sweat shops of China and southeast Asia.
Never forget. The debtor is the slave of the creditor. And Americans are the biggest debtors of all. They bought everything on credit. From their SUVs to their swimming pools to their remodeled kitchens.
They thought inflation would let them pay back their debt with ever-cheaper dollars. Now they are learning the hard truth. They can’t pay it back at all. Deflation makes their dollars more dear and harder to come by.
This is the ultimate tragedy for America. Most Americans will end up paying a terrible price for their debt. They are becoming a nation of debt slaves.
For us, knowing the secret of this depression and deflation could mean a fortune. Because we have a way to potentially make a killing -– when and if the events we know are coming, actually do take place.
Which leads me to the next key point…
3rd problem with these bailouts: me
I have a pretty good record of seeing the economic future. But sometimes that is not all it’s cracked up to be.
The problem is timing. There’s no way to know exactly when events you see in the future will unfold.
In the past, that could be a titty twister. The wrecking ball of trading. We could be right. We could get there ahead of time. But time and the dreaded margin call was our enemy.
Not any more, though…
Number 4: the good news
You can turn this economic upheaval to your great benefit -– and you don’t have to worry about timing!
Here’s why. As I’ve shown you, a new world order is taking over. The EU, the IMF and the real power-brokers are running things. They are re-shaping the world into their deflationary vision.
Everyone will earn less. Have less. Pay more taxes, and still owe them more.
Huge financial institutions and corporations in America will be toppled. Nothing can stop that.
Folks, this is no longer a prediction. It’s already started. Think GM. Lehman Brothers. AIG. Merrill Lynch. Chrysler. Greece and now Spain.
All great icons from America’s and the world’s golden era. All wiped out, by the new world order.
The brand-new trading tool we use helps make sure that does NOT happen to you. This tool gives you two things.
One, a way you could protect your wealth. While our biggest companies and financial institutions fall apart -– as the IMF uses debt as a noose to strangle us and take our vast wealth -– you could keep your money safe and sound. You could escape the debt slave trap.
Two, you could make the most spectacular potential profits I have ever seen, or even heard of. Bar none. You have the realistic potential to make 100 for 1 profits. Maybe more.
This is not just wishful thinking. The trades I’m talking about have already done this!
In the last market downturn they proved themselves like no other. In fact, one of them soared to over $1000 a share, on a split-adjusted basis. That’s because these trades make money, as our biggest, dead-broke banks fall in value.
Make no mistake. Our banks are flat broke. Why do you think they have needed trillions in bailouts -– just to keep their doors open? Why have hundreds gone under…leaving the FDIC itself broke…with more than a thousand still on the federal bank problem list?
These banks are losing more money than ever before. But thanks to temporary bailouts -– thanks to the stock market rally-back -– their share prices have soared in value!
They have never been more over-valued. They are overdue for another huge wipeout. Look how much you could potentially make…
Say these special trades I’m telling you about just go back to where they were when the rally-back started. You could turn a thousand dollars into a hundred thousand. Ten thousand into a million.
Now suppose you have a bigger stake to speculate with. Say fifty grand. You could turn that into five million.
And here’s the best part. You never risk a penny of your money, other than your initial investment. You face no margin calls. No expiration dates.
You can wait till the cows come home, for the market to go our way. When it does, you could make the killing of killings. Time is no longer your enemy. It’s your ally.
My friend, I have never been more sure that the market WILL go our way. Of course I could be wrong. But the proof of the ugly new world order is everywhere.
You have seen the first domino fall. We are in a still spreading depression. Real estate is doomed. So are banks and commodities. And that presents some of the greatest trading opportunities we have ever seen.
Watch Greece, then Spain and England, over the coming days, weeks and months. Look at the impoverishment of their masses. The rioting in the streets.
A wild bucking bronco was just broken. It was made into a kids’ pony horse, that must work the rest of its life for food and a bed of hay. Rather than be a stud, running wild and free.
As you ponder the Greek and EU economic/sovereign debt wipeouts, think of America. We owe more debt than all of them put together. We are FAR more vulnerable than the Greeks, or Spaniards, or Italians, were.
Think of the tightening terms that can be forced on us. The impoverishment of the masses. No magic bullet can save us. No inflationary bailout.
We are facing a depression. It will impoverish the masses, who are hopelessly in debt.
Pretty soon now, you will make half what you used to. You will have half what you used to have. Your taxes will be double what they are now. The good life you have known is going bye-bye. Unless you embrace what I am telling you.
Dollars will be harder and harder to come by. Your debt burden will be bigger and harder to pay.
We know how you can avoid all this. We have the right conservative recommendations, that will help you save your wealth. We also have proven speculative trades. They could make you a fortune, as everyone else is losing theirs.
First the raging fire of deflation claimed the U.S. homeowner. Then it spread to the biggest American banks. Then our major corporations.
Now it is claiming entire countries. The depression it brings is changing the map of the earth. Just like every depression in history has.
The rules of making money -– of just keeping your wealth — have changed once again. Learn the new ways, learn the new world order, or get wiped out with everyone else.
Look around you. A whole lot of people have got it wrong. They are paying a terrible price.
That does not have to happen to you. But you must learn the new rules of the game. Before it’s too late.
Want to know who will rule the world? Who will decide what your house is worth? How much you make, and what you can spend it on?
The IMF and the EU will. The hidden bankers behind them will. They already are Greece’s masters. They will soon bring down Spain and Italy.
And the biggest prize of all is in their cross hairs. The USA. Obama is not our savior. He is the man selling us out to the global bankers.
They run every nation that falls into their debt trap. With an iron fist of austerity. I call it abject poverty.
They are doing what Marx, Lenin, Stalin and Mao dreamed of, but failed to achieve. They are taking over the world. And without firing a shot. They are using the world’s massive debt, to turn the world into their debt slaves.
Please don’t buy that b.s. about “making the world a better place.” The World Bank and IMF have run every nation they touch into the ground. Their job is to make sure their secret world banker owners are paid back every last dime. With compound interest.
They give local politicians the perfect excuse. The ideal cover. “You can throw me out of office. It won’t make any difference. We need money. The only place we can get it is the IMF and world bank. To do that, we must meet these conditions.”
Remember, the biggest debt slaves of all — who owe the most money — are Americans. The U.S. government. We dug this hole. Now we must lie in it.
Americans are about to become much poorer. For generations. We will struggle with this epic mountain of debt.
Remember, part of their plan is to use The Beast to cheat you out of your savings. (If you are lucky enough to have any left.) Having a pile of money will do you no good if you don’t know how to keep them away from it.
And they already have stolen a huge amount from you. Think about the value of your house. Your retirement plan. Your stock market investments.
You will not survive by jumping in on the latest fad bubble investments. Wall Street cooks up new ones for you every week. It uses every P.R. trick in the book to entice you into them.
This is your wakeup call. The debt trap has been set. The world’s most powerful people are springing it.
They are trapping your friends and neighbors. They are picking off nations around the world. Odds are they will trap you, too. Unless you understand the new rules of the game.
I only know one way to get out of this. The rest of this report tells you how. Consider it your get-out-of-debtor-prison free card. I hope you are smart enough to take it.
The markets are rigged – duhh!
So the markets are rigged! So the financial system is going to collapse!
What’s new? Why the shock? It’s not a new discovery.
Sooner or later, every financial system devised by man collapses. Usually a lot sooner than most people imagined.
Markets have been rigged since the beginning of time. Romans filled their “gold” coins with lead. They fooled people into believing they were solid gold.
The Dutch cheated the Indians out of Manhattan Island. For $24 worth of beads and cloth.
Then the English turned the tables, and conned the Dutch. They got Manhattan from Holland for some Caribbean sugar plantations -– right before the cane sugar market collapsed, because they started growing sugar beat in Europe. Europeans didn’t need high-priced cane sugar from the distant islands any more.
New Amsterdam was renamed New York by its new owners, the English. It became the world’s trading center. The former Caribbean sugar colonies became ever-loving hell holes. Their biggest deal of the week is when the cruise ships arrive. Talk about payback to the Dutch!
Rigging the stock and commodities markets is legendary. The little guy always trades at a huge disadvantage. That’s why most stock market Internet-Trader wanna-be’s, along with the “secret commodities trading systems” people use, never make money.
You got to change with the times. At one time, we included futures trades among our recommendations. With no buy or sell stops. We had some luck.
Now the world is different. Wall Street has gotten into the futures market big time. The Beast knows your trades. Your stops. It knows how much money you have to trade with.
Goldman and Wall Street have billion-dollar trading accounts. They can run your stops, empty your account, in minutes. If you don’t have millions to trade with, and a ton of staying power, you cannot compete. They will kill you.
But for every weapon made, someone comes up with a counter weapon. The Samurai spent a lifetime turning their bodies into lethal weapons. They were defeated by the black-powder pistol, that an 80-year old woman could fire.
Suits of armor protected brave knights against swords and axes. The cross-bow bolt defeated them. It sliced through their armor like a hot knife through butter. They never knew what hit them.
Castle walls were hundreds of feet high. They took years to build. The cannon turned them into a pile of rubble in minutes.
The low-flying helicopter gunship, a devastating weapon in Vietnam, was defeated by the shoulder-fired rocket. And on and on it goes.
Goldman’s high-frequency trading super computer (The Beast) is a devastating weapon of mass wealth destruction. It decimates day traders and fund holders.
Own or trade stocks, and Goldman will find you. They will blow you out of the market — if you do not have the right counter weapon. They sink unsuspecting traders, like a passenger ship hit by a German U-boat torpedo.
You have to adjust your trading strategies to the new realities. You must intelligently use new weapons.
Our trading strategy is simple, but Beast/HFT-smart. First, we make sure the vast bulk of your wealth -– 90% or more -– is completely safe and sound: in conservative investments designed to survive this depression and debt wipeout.
The Beast can’t touch you, when you invest this way. Neither can Wall Street, or the government, or Obama. You know your wealth will be there, whenever you want or need it. No matter what.
We cover all this in the Wall Street Insiders newsletter. You learn how to make your wealth invincible to real estate downturns. To stock crashes. To bank failures. It’s not hard, once you know how.
At the same time, we teach small investors how to make 30%, 50% or more returns from their conservative investments: with super-safe SPECIAL U.S. government bonds.
For example, in June 2007 I told Wall Street Insiders subscribers to buy a very specific, very special, non-traditional U.S. government bond. Interest rates at the time were 5.25%. I told my subscribers rates were headed lower.
A year or so later, the value of that bond more than doubled. Had you invested $100,000 in those bonds, you could have pocketed an extra $100K. Or you could have turned $500,000 into $1 million.
That’s from a conservative investment, 100% backed by the U.S. government. No matter what, the U.S. government guarantees to pay you back your principal and interest. No, it’s no longer just your grandpa’s sleepy old bond trade.
Of course, you can’t buy just any government security. You have to know exactly which one. There are hundreds of different types. They have different maturities. Different yields and structures.
But the ones I recommend to you are designed for maximum protection. They also give you the opportunity to make 30%, even 50% gains or more. Worst case, you still get all your money back – with interest!
Once you know your wealth is safe — in conservative investments like the ones I told you about above — you take a small portion of your liquid wealth. 10% or less. That 10% is all you need, to potentially make a killing.
Right now I have over 10 trades like this to give you. They exploit the fatal flaw in The Beast. You could make a fortune at the expense of Goldman and Wall Street. i.e. the very people who have been stealing from you all these years.
With our aggressive recommendations, we don’t play for pennies a share. Or dollars a move. We play for the home run, the big one. With the right instruments. That is one key to potential success.
These recommendations are designed to make money for you, as European debt wipes out. As the financial/economic crisis brings down the global economy, in a sea or red ink and debt.
We play for the big moves and let Wall Street have their daily scalps. The ones they use on retirement and fund investors. We do not day trade, like they do everything in their power to get you to do.
We don’t care if we want to buy an aggressive trade at $10, and Goldman floods the market so it costs $10.25. We are looking for that trade to go to $100. So Goldman’s manipulations don’t affect us.
And when (if!) that big day comes… when The Beast is smoking, like on “Beast Thursday” (May 6)… we are there to storm the castle walls and loot the Goldman treasury.
The secret is to hold your positions. That’s what our trades let you do – at no extra cost. Then you simply wait for the fundamentals to return. They always do. Ask the people who paid $400k for their $150k house — that they are now buried in — about market fundamentals. Ask them about bubbles bursting.
Our secret weapon: it lets
us kill The Beast
The economy is already perched on the edge of a cliff. The Beast -– along with more sovereign debt wipeouts -– could push it over the edge.
That’s why I think it’s essential that you subscribe immediately to my Wall Street Insiders monthly newsletter.
In WSI, you learn about special leveraged “niche” Exchange Traded Funds (ETFs). These ETFs let you, the little guy, trade in ways that used to be possible only for big-wallet hedge funds.
Let me tell you: these little-known ETFs are a gift from God for average investors. Especially in times like these.
They can do for you what the stinger missile did for the Afghans. They used that missile to destroy Russian helicopters and low-flying jets. They handed the USSR its grand defeat in Afghanistan.
ETFs let you tailor your investments to a particular market. They give you endless liquidity. Great leverage.
You have no risk of margin calls. No time limits. ETFs trade in the open, on the global stock markets. They are easy to understand. The likes of Goldman hate them like the plague.
Wall Street wants to make you a bubble trader. A day trader. They want you in their put-up markets and buy their bubbles. Then their computers can screw you to the wall.
They can manipulate you. They can blow your positions out of the water. Ask anyone who got killed by sell stops on BEAST Thursday.
We are in a banking/financial crisis. Obviously. Greece got another round of bailouts, that will ultimately fail. They keep telling us everything is fine. Yet the EU members & US have ponied up one trillion dollars to bail out Greece.
They say the bailout is for everyone. But we know better. Right now they barely have enough money to cover Greece. As we speak Portugal, Italy and Spain need trillions each to bail them out. Merry old England will need $10 trillion more. If it’s possible to save them at all.
Know this — know how the markets collapse when the truth comes out — and you can beat The Beast. Which we have every intention of doing.
My friend, please remember. They no longer must “merely” bail out banks or major companies. Now they must bail out sovereign states, entire nations, and their citizens. That is against EU rules. They swore it would never happen.
That should set off a siren in your brain. This global depression, is still with us. The EU weak sisters will be thrown out on their asses. This will make the EU stronger.
The rolling depression is claiming more victims by the day. Despite the sick spin about the “recovery,” that fewer and fewer people believe we are in.
We are about to see the real fundamentals come back, with a vengeance. Real soon now.
I can’t wait!
Suppose Obama’s bailouts don’t work
What happens to you?
For the past two years, two things have held together the global economy. Sweeping messes under the carpet… and government bailouts, paid for by some very pissed-off U.S. taxpayers.
Government spent trillions of your dollars, to give bailouts to our biggest banks. Citigroup, Bank America and Wells Fargo are a few examples.
We bailed out America’s biggest companies. Like AIG, General Motors and Chrysler. Our giant investment banks, like Merrill Lynch. We even bailed out Europe’s major banks and real estate companies. When does it all end?
Our leaders promised us the bailouts would stop the hemorrhaging. They would create jobs and put the economy back on track. They told us we are in a recovery.
Total lies. Today more Americans are out of work than at any time in history. Over 30 million. U.S. auto sales have nearly fallen in half. Foreclosures keep setting new records. And housing prices have dropped 40% or more, with no end in sight.
We were told the bailouts were short-term fixes. They would quickly come to an end. More bull. Now we don’t just bail out companies or banks. We are trying to bail out entire nations.
Welcome to the brave new world. Major countries are impossible to save. Wall Street’s brilliant “solution:” give them trillions more, OF OUR MONEY!
Yes, our money. As of now, America’s share of the Greek bailout is over $50 billion. Before our wonderful officials are done, it will end up much higher.
And that’s not all. America’s biggest states are also stone, cold broke. They too must soon come begging for even more bailouts.
California will need hundreds of billions of dollars. Maybe more. So will a number of other dead-broke states. Like New York, New Jersey, Illinois and Michigan, to name a few.
The spreading derivatives wipeout has bankrupted them. Just like it has bankrupted the overall U.S. economy and nations around the world.
By now it should be obvious to you. Things are getting worse by the day. Certainly not better.
So here’s the question you face. It’s a deal breaker. In fact, this one issue could decide if you die poor -– or live out the rest of your years in wealth and comfort.
Suppose the bailouts don’t work. Suppose the derivatives losses continue. What happens to you then?
Suppose Obama, Congress and Timothy Geithner, despite their superior wisdom, cannot reverse the laws of gravity. Suppose the bailouts fail.
What happens to your wealth?
What happens if the “recovery” fizzles out, and the U.S. and global economies continue their slow-motion train wreck?
Have you considered the possibility that the money in your bank could be lost –- remember, the FDIC also is broke -– or your account frozen for years?
How about your mutual fund, money market and retirement plan? What if your funds not only don’t recover: they begin another plunge to the ground?
What would you do if they wipe out and close down? How would you live? These are questions you have to ask yourself and be prepared for.
We just learned what Goldman Sachs did. Besides stealing from everyone, through The Beast, they blatantly traded AGAINST the so-called recovery. Against their own customers.
They told their clients to invest their future on the real estate “turnaround” -– while Goldman took the opposite side of those trades! They even did this on leverage!
This is how Goldman does business. Back-stabbing its own clients. It wiped out entire countries and governments. All by selling derivatives it knew would blow up in its clients’ faces.
And for its blatant theft of its clients’ assets, Goldman executives now face possible criminal indictments. As the Wall Street Journal reported:
Federal prosecutors are conducting a criminal investigation into whether Goldman Sachs Group Inc. or its employees committed securities fraud in connection with its mortgage trading, people familiar with the probe say.
The investigation from the Manhattan U.S. Attorney’s Office stemmed from a referral from the Securities and Exchange Commission, these people say. The SEC recently filed civil securities-fraud charges against the big Wall Street firm and a trader in its mortgage group. Goldman and the trader say they have done nothing wrong and are fighting the civil charges.
Remember, 70% of the IMF’s money comes from the U.S. So again, when they talk about the IMF bailing out Greece, Spain Italy Portugal and the rest of them in reality Uncle Sam (you) are bailing them out.
Do you really want your money to go to Portugal, Spain, Italy, England and every other nation that has borrowed too much?
And that’s on top of bailing out the U.S. housing market… our biggest banks and companies… the consumer… the states… and every industry from autos to construction to insurance.
The day will soon come when the U.S. cannot beg, borrow, tax or even print enough money to continue the bailouts. What happens then?
What happens when the dead-broke, walking-dead-men banks and corporations are allowed to fail?
Somebody is going to lose one hell of a lot of money. Now guess who that somebody is? Everyone who buys into this recovery b.s.
If we were truly in a recovery, this would NOT be happening. You would see fewer bailouts. You wouldn’t be watching riot police bashing heads in Athens. You would not hear talk of the biggest economies on earth sputtering.
The masses put their faith in Wall Street. In the politicians. These people believe they don’t need to do a thing. Just sit back and wait for the happy days Obama and Nancy Pelosi promise.
But maybe, just maybe, things won’t turn out as they say. If you think that is a possibility, there is something you can do. You can get “wipeout insurance”* for yourself, against what we believe is the next phase of the economic wipeout.
*Let me explain what I mean by “wipeout insurance.” It’s not an insurance policy as such. It’s similar to what Wall Street calls “portfolio insurance.” That is where they buy instruments they hope makes them money, if the trades they hold go bad. In that case, the “portfolio insurance” offsets their losses.
Our “wipeout insurance” is based on the same principle. It’s a group of trades, rolled into several unique instruments. We believe these instruments will go up (make money) — if and when the stock market turns down again.
This special kind of “wipeout insurance” won’t cost you much. A tiny part of your wealth. But it could save you, if the unthinkable happens: another stock market wipeout and economic downturn. I believe with all my heart and soul that will happen.
Say Wall Street is right. Not a chance in hell, but let’s do the mental exercise anyway. Stocks keep marching up forever.
You’re only out a little: the small amount you put into your “wipeout insurance”/offset trades. The great economic boom, which they promise is right around the corner, will more than make up the difference for you. That’s if things go as they say.
Now suppose I have somehow guessed right again. Your “wipeout insurance” -– the specific trades I reveal in my monthly newsletter, the Wall Street Insiders — could well be worth their weight in gold, a thousand times over.
Subscribe to the Wall Street Insiders:
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That’s why I urge you to join us. To subscribe to the Wall Street Insiders monthly newsletter.
One thing I can promise you. The Wall Street Insiders is unlike any investment advisory you’ve ever seen, bar none.
A typical monthly issue contains 50-to-60 pages. You get in-depth analysis of crucial parts of the global economic puzzle. Things you NEVER read about in the newspaper, or hear on the TV news, until it’s too late.
For example, one recent issue was entitled China Doll. It revealed how the whole China economic “miracle” storyline peddled by Wall Street is nothing more than a sick sham… and people who believe it could end up losing everything.
(Did you know that only 100 million Chinese participate in the new factory systems… while 1.2 billion are starving to death out in the provinces? That China has the biggest debt in the world -– hidden in the provinces -– and considers the “poverty line” to be only 11 cents a day? And we’re supposed to believe that China is going to end the global recession?)
Another issue, DEAD MEAT, revealed the truth about the sovereign debt crisis. About the spreading wipeout in Europe. This crisis will eventually destroy the global economic system.
Months before the EU crisis was on the news, we told our subscribers about what was really going on there. We showed them how the “PIGIES” were going to bankrupt the EU… and trigger another massive credit crisis. All this is happening as we speak.
I never waste your time with vague theories. My whole goal is to help you protect your core wealth, your life savings, and potentially grow rich.
So in WSI you get detailed recommendations for protecting your assets. You learn specific steps you should take with your bank accounts…your real estate… your retirement accounts…your investments…and your speculative trades.
But it doesn’t stop there. As I mentioned, Wall Street Insiders also shows you the specialized “niche” ETFs: the handful of super-charged trades that could potentially skyrocket in value during the coming computerized wipeout.
For example, one little-known, highly-leveraged investment could go from $15 a share today to over $500 a share, in the next big drop. Would you invest a few thousand on the chance that, if things go badly and there really is another “double dip” recession, you could make hundreds of thousands in a matter of months?
I don’t know about you… but I consider that kind of “portfolio insurance” well worth it.
A one-year subscription to the Wall Street Insiders is $199. That works out to just 54 cents a day. Less than you spend on a cup of coffee. But to sweeten the deal, I have an even better offer for you:
Accept a two-year subscription for just $299. You save 50% on the second year. I’ll also send you not one but SIX valuable bonus reports.
These privately printed special reports are worth an additional $774. But they are yours free, to help you get through the next several years with your wealth intact.
The reports are sort of a condensed version of the advice and recommendations I’ve been giving my subscribers over the past two years. They represent nearly 30 years of successfully trading the markets:
Beast Survival Blueprint #1:
Make a Fortune Selling Gold
Global depressions are actually the best of all times for investors — if you understand them and know what to do. Most people have stuck their heads in the sand. You face little competition: the masses are still in denial.
Gold is a good example of this. The masses believe, because Wall Street tells them to believe, that inflation is coming. So everyone should invest in gold.
The truth is, Wall Street insiders are SELLING, not buying, gold. According to the World Gold Council, identifiable investment in gold has fallen from 609 tons in the first quarter of 2009 to just 186.4 tons in Q1 2010 – a DECLINE of -69% in a year. Gold ETF investment has dropped 99%, from $13.5 billion to just $135 million. You see, the gold insiders know the world is facing a deflationary spiral, that will bring the price of gold back down to below $300 an ounce. As a result, they’re DUMPING gold at record-high prices!
If I am right, do you realize the kind of money that could be made?
This special financial blueprint explains, in detail, how you could pile up obscene profits SELLING gold over the next several months.
You don’t use futures or face ugly margin calls. You never risk more than your modest initial investment. But if gold does what I expect, you could get rich with these investments.
Over the next few years, most people you know will go broke. They put their faith in the lying politicians, the thieving bankers and the Wall Street whores.
But you can turn the tables on them, on the people who want to take everything you own and worked for. Instead of getting wiped out, this is your opportunity to potentially get filthy stinking rich, Rich, RICH! It’s a $129 value, yours FREE!
Beast Survival Blueprint #2:
Protect Your Life Savings from Failing Banks
Most everyone’s hopes (and fears) are still on the stock market. But the real action is still in the banks.
More than $10 trillion of investor savings have been vaporized in the past 24 months. $3 trillion of that since the government passed its $700 billion “bailout” of the banks. That’s because the banks are flat-out broke. Nothing government can do will change that.
As the Head of the IMF, Dominique Strauss-Kahn, told reporters, “intensifying solvency concerns…have pushed the global financial system to the brink of systemic meltdown.”
Why do you think government was forced to give Citibank hundreds of billions of dollars in bailouts? Why does the FDIC shut down hundreds of banks each year now? Why is the FDIC itself broke, in need of a bailout? Why do you think the sovereign states of the European Union are clamoring for a bailout?
In a word, they are broke. No one wants to admit it. But bank after bank, country after country, is stone cold broke.
Fortunately, there are steps you can take right now to protect your savings from the banking meltdown. This vitally important report tells you what to do! It’s a $129 value, yours FREE!
Beast Survival Blueprint #3:
Double Your Money with
U.S. Government Bonds
There is a little-known way you can get a U.S. Government fixed-income security –- 100% guaranteed by the U.S. government — that could earn you a 100% return in a year.
This is the closest thing to a slam-dunk trade I’ve seen in 30 years. You get a locked in return of 3% to 4% annually. You also have the potential to make 100% or more profits -— within the next year or two!
I am begging every man, woman and child I know to make this trade.
You protect your savings: these are fully-guaranteed U.S. Government securities. The safest investment on the planet, other than cash in your mattress.
Plus, you have a realistic shot at making a 100% profit in a year. You can’t lose a penny, no matter what. At worst, you make a decent yield as a return. All GUARANTEED by the US government.
Find out all you need to know about this amazing money-making trade in this bonus report. It’s a $129 value, yours FREE!
Beast Survival Blueprint #4:
Grow Wealthy in the Stock Crash of 2010-2011!
On October 13, 2008, a week before the S&P 500 hit its lowest point in the past six years, I told subscribers to take profits on more than 36 specific ETF recommendations.
But I made it clear then that this was just a temporary lull in the action. The BIG ONE… the real stock market wipeout… was still to come.
I predicted that the phony Fed bailout would spark a short-term but intense bear market rally-back.
Sure enough, Barack Obama and the Democrats in Congress used every resource of the U.S. government — every penny of taxpayer money they can beg, borrow or steal — to get a massive stock market rally going.
That’s what we saw throughout 2009 and into 2010. This has lured millions of trusting investors back into the market casino.
But mark my words. One day soon… when the market least expects it… when the news media are saying the worst is over and the economy will somehow muddle through… POW! The REAL wipeout will hit!
All by itself, this report could save your financial life. It shows you how you could protect your core wealth from what will turn out to be an historic stock market crash… and also grow many times wealthier, when everyone else is losing their shirt! It’s a $129 value, yours FREE!
Beast Survival Blueprint #5:
The Deflation Survival Guide
Few people understand one of the single most important points for your investments today: that we have already entered an historic deflation. The price for almost everything you buy is going down, down, down.
Oil has fallen from $150 a barrel to under $90. The price of wheat has cut in half in the past 12 months. Same with lumber, cattle, orange juice, soybeans, you name the commodity. Prices are HALF what they were a year ago.
The CPI has turned negative — i.e., consumer prices are falling. On May 20, the government announced that inflation is at its lowest point since World War II! PPI (producer prices) are falling even faster. And the M3 money supply is shrinking rapidly: as fast as it did in the last great deflation, during the 1930s depression.
The problem is, almost NO ONE knows how to survive deflation. They have never lived through it before. All they know is inflation and rising prices.
You must use radically different thinking and strategies. This guide alone (valued at $129) is worth many times the cost of a subscription.
Beast Survival Blueprint #6:
How to Make a Killing with
Exchange Traded Funds
I don’t recommend you invest in stocks, mutual funds or commodities. Why? Because now there is something that works much better than any of those.
I’m talking about the new trading vehicles that are a low-cost alternative to mutual funds…and that give you much greater protection: Exchange Traded Funds.
For one thing, some ETFs are designed to make DOUBLE or even TRIPLE the profits of an underlying index or market — even when it’s tanking! Yet your risk is still limited to your initial investment. Not a penny more.
Plus, new ETFs now allow ordinary investors to trade commodities markets — WITHOUT margin calls or futures contracts. This is why average investors could make huge potential profits in oil, precious and industrial metals, and key agricultural commodities. All without taking on the enormous risks of futures.
Find out how you can beat Wall Street at its own game. It’s all in this free bonus gift – valued at $129.
My personal guarantee
I have something in my heart I must tell you.
You’ll find few people more controversial than I am. If you are not familiar with my track record of being right, some of what I tell you may sound crazy. I assure you, it’s not.
What I want you to understand is that economic wipeouts can now occur very quickly. The Beast makes that certain.
We are living in a global economy. It is tied together by a vast network of supercomputers. Trillions of dollars race across continents at the speed of light. Every day.
A hurricane off the Gulf Coast of Louisiana can send oil prices skyrocketing half a world away. Eighteen crazed Muslim fanatics on 9/11 can stop the world economy in its tracks.
Ordinary Americans now know this. For years, many of them enjoyed their half-million dollar houses. Their granite countertops and marble-floored kitchens. Living the good life.
Then one day the boss tapped them on the shoulder and said, “You’re fired.”
These people have no savings. They bought everything on credit. They owe huge amounts of money. All of a sudden, they can’t pay it back.
In 60 days, they went from riches to rags.
I’m here to warn you that this could happen again.
In fact, it’s virtually certain to happen again. The Flash Crash on May 6 demonstrated just how vulnerable the world economy really is.
My advice: position your money now, so you can profit when The Beast triggers another major crash.
First you make sure your wealth is bullet proof. Our conservative recommendations show you how to do that.
Then you put $1k, $5k, $10k, $20k, $50k (ideally 10% of your liquid net worth) into a handful of specialized trades we recommend in the Wall Street Insiders.
These trades could sit there the next two to six months. Maybe even a year. They have no expiration date. They can’t cost you any more than your initial investment.
Say I’m wrong. The economy improves. We all breathe a sigh of relief. Worst case, your wealth is still safe and sound. You can use it to buy mansions for a few pennies on the dollar.
But what if I’m right? What if more European nations see their debt go bad… the Beast strikes again… or stocks take another major downturn? What if the “double dip” recession everyone talks about actually arrives?
Well, then my “crazy” advice could make you literally millions of dollars. That money could save your financial life. Why take chances?
You owe it to yourself, and your family, to hear another point of view. One that tells you what’s really going on in the global economy, and how you can profit from the ongoing crisis we are in.
Call me right now toll-free at 1-866-924-0607 (outside the U.S. call 1-913-871-0701). Or order online by clicking on the button below…
P.S. Call 1-866-924-0607 right now to receive your early reply bonus — a special audio report on my very latest conservative recommendations. (If you live outside of the U.S., call 1-913-871-0701.) These will, I believe, protect you from the financial chaos when the next computer-triggered crash hits. Just call the following toll-free number within the next ten days: Thank you.
I’ve explained all this to you in the past. But bubbles are always surrounded by blizzards of b.s. spin. And contrarian trades, by their nature, are bound to try your patience. So sometimes it’s good for us to review things.
But let’s not get carried away here. 95% of the time, markets are boring. That 5% is when sheer terror strikes. It can be a real titty twister.
You are right. I have been quiet lately. That does not mean I’ve been sleeping. In fact I have two red-hot stories for you. You know, the ones I tell you about first — and then 6 to 12 months later, when the information is worthless, Wall Street finally clues you in.
My job is to lead this hunting party. To see that you get there ahead of time. Don’t let Wall Street turn you into a buzzard, who gets there after the meat is long gone. Their way, all you get is the bones to pick.
The last thing you need from me is a stream of meaningless bullshit. That’s Wall Street and the teleprompter analysts’ job.
I’m here to tell you that I believe this latest round of bubbles will blow up in their sleazy faces. Probably in the next 3, 6 or 9 months. Then these markets will begin their next nose dive to the ground.
There are several reasons why. First, China has created a horrendous bubble. Entire cities there, built to house millions of people, sit abandoned. Brand new mega-factories are idle: there is no demand for their products. China will be the biggest casualty of the next wipeout.
I am finishing a very detailed report about this. In it I explain to you why the Chinese “miracle” is really the Chinese nightmare. A very dangerous nightmare indeed. Look for it on the WSI Insiders website shortly (for subscribers only).
Second, major countries the world over are now withdrawing liquidity. The Fed publicly raised rates at the Discount Window. Meaning there is no more free money for U.S. banks: the Fed privately let it be known to our banker buddies that party is over. And when (not if) the banks go broke this time, they will be liquidated. “Too big to fail” will be “bye bye extinct dinosaur.”
Central banks around the world are going further than the Fed has. They haven’t just stopped adding liquidity. They are slowly draining liquidity.
The central banks know they have been had by the world’s biggest financial institutions. Bailout buck were suppose to have been used to wind down bad loans and liquidating money losing derivatives trades. Instead they have been used for, doubling down on their losing positions, and runaway bonuses for insiders. This has really pissed off those who have not been bought off.
They realize this latest round of bubble blowing was a severe mistake. It has not mitigated the problem. It has made it worse. They know the dead-broke institutions are going to have to be put down. Even the institutions that were supposedly “too-big-to-fail.” This time they will be liquidated, and let the chips fall where they may.
They are setting the stage for this. It’s occurring before your very eyes, whether or not CNN tells you about it.
Once again, I could be wrong. If I am, the trade recos I’ve given you could cost you your investment in them. But I also could be right. In that case, you could make a not-so-small fortune. Our risk/reward ratio here is the best I’ve seen.
I really believe in these trades. When I tell you they are the best I have ever seen, I really mean it.
I am 100% satisfied with our trade recos. Our specific market, carefully chosen ETFs let us hold our positions, at no extra cost, till the markets go our way. We are averaging in very well.
I’m also 100% satisfied with the markets we are trading. We are perfectly positioned, in my opinion, to potentially make a killing in each one — if it turns out we have guessed right once again.
One thing did surprise me a little. From the start of these trades, I have given all of you detailed explanations of what we faced. Of what to expect.
I told you we were going to layer in, that it would take time. I told you endless times this is speculating. Never trade with money you can’t afford to lose.
So I was a little surprised to hear the cries of pain from some subscribers. Both at how much the markets have rallied against us, and the time the trades have taken. It’s critical at times like these to keep your perspective.
Folks, you have lived through the biggest bubble in history. The biggest stock market rally-back now up over 70%. You’ve lived through the biggest b.s. spin job ever contrived. Rat-shit Nazi spin doctors like Goebbels would be proud of the propaganda campaign that has taken in the masses.
From the first, I told you the Dow could go over 11,000. I told you $1200 gold was well within my expectations. So were $100 oil, and a 4% yield on the 10-year bond. If you followed my recommendations you are perfectly positioned to take advantage of these events.
Plus we are getting two damn nice bonuses. The PIGIES are wiping out in Europe. (Portugal, Ireland, Greece, Italy, England and Spain.) And China’s liquidity bubble is bursting again. This gives us several more trades that could do extremely well.
I believe our patience is about to be rewarded. The liquidity given to Goldman Sachs, AIG, GMAC, GE, Citi, BA, and Wells Fargo (to name a few) has dried up. They are close to blowing their wads. And that means it’s my belief another round of bubbles will burst soon. These act of desperate bubble rallies are the only thing that has kept them afloat.
To show you how dirty it’s been: till now major U.S. banks and financial institutions could borrow money from the Fed at 0.25%… and then loan it back to government at 2.25%.
They were making an incredible profit of two percentage points (200 basis points). For doing nothing. That is free money.
But they didn’t bank those profits. They didn’t use them to remove the bad derivatives debts from their balance sheets. Even though they said they would do that.
They took that money and went right back into the derivatives casino. As I told you, they doubled down. These “new” toxic derivatives are biting them in the butt. Same in Europe and China.
The world’s major governments got involved in a mindless, bubble- blowing stimulus campaign. That is why oil — after soaring to $150 a barrel and then wiping out to $40 — is back where we got our last layer of positions. In the mid-$80s.
Every day, I hope they get $95 to $100 oil. We could add another layer of positions. That could make our potential profits even greater, when the market crashes as I expect.
The gold rally has been disappointing. I hoped we could get higher positions on the latest breakout. But the market seems to have stalled. Still, a drop from here to around $250 an ounce (where I believe gold is heading) could make us an incredibly nice chunk of change.
Long bonds have done well. Interest rates got within a smidgeon of 4% on the ten year. Our zero-coupons and long bond ETF’s are close to another average point. I will let you know if we reach it.
As a man who has spent a lifetime profiting from the destruction of bubbles, I can tell you I’ve never been more satisfied with a group of trades. Each one is within the range we expected. Each one looks to me like it’s about to go our way. But as you well know, I could be wrong. That is why you place your bet, spin the wheel, and hope lady luck is with us.
For those of you who are antsy…who want more action…who would like the markets to roll over tomorrow…all I can do is remind you: that is just not how trading works.
I wish it were different. But it’s not. Reality is, bubbles grow bigger and bigger. They burst when they have suckered in the maximum amount of available money. That process can be a royal pain in the ass, as you wait them out.
I think we are very close to that point now. Let me get specific. I believe the Dow is a few hundred points from its top. Oil within 25 bucks. Gold within 200 bucks. And long-term interest rates within one percentage point of their top.
I believe we will see the biggest plunge in these markets EVER, when the fat lady finally sings. I could be wrong!
In 2008 through March 2009, the economy and markets wiped out. Just as we predicted. The banks and financial institutions we told you ahead of time would collapse, did so.
After that I had a brief glimmer of hope. There was a small chance that government really would set up the “bad bank.” That they would use the TARP and bailout funds to clean up the massive, derivatives-magnified bad debt. And they would rein in this uncontrolled irresponsible market manipulations by the worlds biggest financial institutions.
I had a brief flicker of hope that maybe just maybe the mega-financial institutions would take the bad loans off their books. Unwind the trillions in incredibly stupid, highly leveraged bad paper they all held en masse.
At that time when the last bubble burst we closed out our positions. We did quite well. And we stood back and watched. I soon realized the truth: they were trying the most insane “solution” possible to the crisis.
They were not going to liquidate their derivatives. The toxic money-losers that wiped out the world’s biggest financial institutions. Even though that was the specific purpose for the bailout money. So much for their promises.
Instead they turned to the horror of horrors. The institutions would be allowed to hold their mega-money-losing trades. They could even use the bailout funds to make more of the same derivatives trades!
This is known as doubling down. And that is what they did.
I knew this would create even bigger bubbles. Bigger trading opportunities, if we were right.
There was no chance real estate could recover. The damage to that market was too great.
Fannie Mae and Freddie Mac hold 50% of the nation’s mortgages. They are leveraged 100 to 1. They had already gotten hundreds of billions in bailouts. Congress just increased that to over a trillion dollars. Not enough. They are still losing their ass.
So you could forget about the pretty rescue/mortgage-workout tinsel working. The bloodbath in the housing market would continue. That is happening now. It will keep collapsing for some time. Remember, 5 to 10 cents on the dollar will be the bottom.
I also knew the bankers, Wall Streeters and politicians were beyond desperate. They would try to drive up every market they could get their sleazy hands on. I told you bubbles would occur in gold, oil, the dead-broke financial institutions, and the stock market.
I knew as the bubble grew bigger, more people would get fooled. They would buy into the recovery b.s. Stocks, gold, oil and bonds would go against us. So our strategy was clear.
Pick the instruments that would do the worst as the bubbles grew. When the bubbles burst, those instruments should do the best.
I was not about to make the mistake of trying to pick the peak, by buying in all at once. Instead, I recommended you layer in these instruments (i.e. buy positions over time, at different price point) a little at a time. At each purchasing point, you should add 25% of the total amount you want to trade with. That would give you even better bargains as time went on.
This also involved my most difficult job. Gauging how big the bubbles would get. How long they would last. And planning a strategy that would let us accumulate and hold positions that would do the best.
Wall Street, the investment bankers, and their orgy bedfellows the whore politicians, have dreamed up plenty of low-down dirty rotten tricks. But the most deadly of all, that does the most damage, is the liquidity bubble.
It causes loss of wealth for the masses like no other evil trick they have cooked up. And it fools the most people.
In the liquidity bubble, government creates vast amounts of money through its discount window. Wall Street banks and financial institutions borrow that money, at close to zero percent interest rates. Free money.
Then they leverage their free money hundreds of times over, with derivatives. They drive up the price of key financial assets and commodities. They do this through their hedge funds, and off-the-books, special-purpose entities. (Mostly used to commit fraud.)
Based on REAL top-line driven bottom line sustainable profits, the Dow should be at 5000 right now. Heading lower. It sure as shit should not be around 11,000, in its biggest one-year rally ever.
Similarly, gold should be $300 an ounce, not $1100. Oil should be at $10 a barrel, not approaching $90.
These markets have soared against their fundamentals. Strictly due to that massive liquidity creating bubbles in these key markets the wall street and banker whores have chosen to manipulate. Government created that liquidity out of desperation. Out of its misguided attempt to bail out the economy. To try and stop the slide into a depression so big, it will make the last one look like a cub scout jamboree.
These rallies you’ve seen are nothing more then short-term bubbles. They create the false illusion of prosperity. Then they collapse in devastating busts, as the bubbles burst once again.
You have witnessed several of these collapses in the recent past. Oil, stocks, gold, commodities and real estate are a few examples.
The last liquidity bubble (before the one we are living through right now) peaked in late 2007. In 2008-09 that bubble burst, kicking off the Great Depression II. This crisis has impoverished more people than any in history. It has wiped out more wealth than any liquidity-bubble boom/bust cycle the world has seen.
Before you take a bungee jump off a bridge without the cord, let me tell you the extraordinarily good news in this. In the coming weeks, months and years, we could make a fortune.
In principle, it’s not hard to know what to do. We take the opposite side, of the very derivatives that got our economy into this mess to begin with.
Remember, derivatives let the banks leverage their balance sheets to the moon. Now things are falling apart. So that leverage is working the opposite way. It is leveraging their losses.
Which means it has the potential to leverage our profits. This is our key to potentially making a king’s ransom.
I have already given you derivatives reco’s (i.e. ETFs), that let you get at the stock market. At the real estate REITs (real estate investment trusts). At the dead-broke banks. Gold. Oil. At the vast debt markets.
These are great trades,in my opinion. They will take some time to unfold. The way I see it, they are well worth the risk. If they do what I expect, we could make a series of incredible killings from them.
And now we could potentially raise that to a whole new level. We could get at the sovereign states as they go broke. Blood -– the real stuff — has already started flowing in the streets. This is just the start. You ain’t seen shit!
You might say, “wait a minute. I haven’t seen the wipeout.”
Yes you have. We already traded the first phase of this wipeout. Now we are positioning ourselves for the second.
Phase two is the ongoing banking wipeout. It will follow the “fake-them-out/recovery” rally-back. The sovereign debt crisis is your wake-up call for round two. It is starting as we speak.
“I have only seen the stock market go up,” you might say. “Same with oil and gold.”
Really now. Well, you should have been here when we traded the markets that went down so hard last year. And the year before.
Yes, gold and stocks have rallied since last March’s lows. Like we told you they would. Before that, they made historic crashes. Also just like we said they would.
These recent rally-backs give us another chance to whack the bastards again. The rally-back you have witnessed in stocks, gold oil and interest rates are, in my humble dishwasher opinion, a trading gift form GOD.
Ask yourself this question. What is different since last year at this time? What has happened to change the nosedive the world financial system is in?
Is the economy better? Are more people working? Has the hahahah housing market recovered?
Are people suddenly paying their mortgages? Have the alleged “buyers” suddenly come back into the housing market?
What a remarkable time. So many smart people have gotten suckered. They believe the biggest lie of all: that the worst financial crisis in history has played itself out, from start to finish, in less then 18 months. They are sheep headed for the slaughter.
My newest tape in production now is our latest offering in Current Recommendations. I wanted you to see this background information first. Current Recommendations will soon be posted on the Insiders website. It deals with the incredible specific opportunities presenting themselves, due to the sovereign debt wipeout and the ongoing, spreading depression.
Many of these opportunities are brand new. Almost no one understands them. As usual, the financial press is about six months behind the curve. And lying their asses off when they finally do catch up.
These trades let you potentially cash in, as nation after nation wipes out in Europe. As the Asian “miracle” turns into a fiery dragon collapse, straight from the pits of hell. This is especially true of China.
You and I are incredibly fortunate. We are living in an unprecedented time of financial history.
You just don’t get lucky like this that often. You could go through a lifetime of trading, and never see one-tenth the opportunities we have right now.
Of course Wall Street says we are wrong. What a shock. Who the hell is going to admit we are in a depression -– a wipeout of biblical proportions? Especially when they got stocks to sell and mutual fund retirement accounts to strip clean?
Let’s get real. Suppose the masses could figure it out. Would they really be losing their homes en masse? Would their life savings have crashed by half or more?
First they invested in dot.com’s. “For the long haul.” Predictable they lost their asses. Then they moved over to real estate. Wall Street told them to buy that stuff now, because they aren’t making any more of it.
Real estate collapsed, too, to no Insiders surprise. It still has a long, long way to fall. People are getting their asses handed to them.
Since then did the masses all of a sudden take a smart pill? You believe now they suddenly got it right? That buying gold, getting ready for hyper-inflation, is the right play now?
Sorry. I don’t believe that for a minute. The facts say gold is another sucker play, a colossal money loser.
I say we are in a depression. We will be in a depression for the next ten years or more. Anyone who trades for a recovery — that will supposedly create thirty million new jobs, bring on shortages in oil and commodities because of soaring consumer demand -– that will send gold to the stratosphere because of debt monetization and Chinese buying -– is going to wipe out even more.
Just look at the track record of these people. They have been on the wrong side of every major move for decades. I do not believe for a minute they finally got it right this time.
We have incredible opportunities before us. I have never seen more startling proof of the spreading economic wipeout.
I’m Nick, I’m still at your service…. especially in these very difficult times,
Nick DISHWASHER Guarino
Convicted felon, banned trader, and gagged market analyst. But it is a fair fight. Because with my two hands tied behind my back, in the ring with these pompous asses, brains and truth still wins…..
At first blush, all these welfare state benefits appear wonderful. Like money from heaven. Who could say no?
Who could be upset with saving a baby’s life, using the miracles of modern medicine? Making sure our grandmothers have the best health care, convalescent housing, and endless entertainment in their retirement years?
Socialism is seductive. For a while, every day seems like Christmas. You can spend more than you make. Consume more than you produce. Give out more in benefits than you ever paid for in taxes.
Pretty soon people forget they are getting much more in “benefits” than they paid in. They come to expect these benefits as their right.
And that is just the direct government handouts. Never mind the indirect subsidies I pointed out to you earlier. Roads. Water systems. Electricity. Sewage systems. Phones.
Even the damn weather systems — the rings of satellites that give us global communication, TV and internet — are almost COMPLETELY government subsidized.
So much mortgage and consumer debt was issued the past ten years, many people with modest jobs lived in modern-day marble palaces. With a swimming pool. Two-car garages filled with SUVs, jet skies, motorcycles, 4x4s. All the toys.
Every two years, they could buy a new car of their choice. The sky was the limit. They didn’t need to save money. They could get it all on credit. In fact the equity in their home was their own personal ATM machine. That was the new paradigm.
Same with businesses. They, too, seemed to defy the laws of economics and physics. They got something for nothing.
They could build magnificent shopping centers, and stock them with billions of dollars of Chinese (slave-labor-made) inventory. All these shopping centers were government subsidized. All financed by our banker buddies, with municipal bonds that will never be paid back.
Even corporations were on the global welfare system. They became no more efficient or productive. Yet the masses bought their new shares of stock, by the trillions.
So stock prices soared to the moon, as stock market ownership through retirement funds became the “investment” of choice. Even though the companies made no more profits.
This gave public companies trillions of leveraged dollars to play with. And play they did. Corporate pay shot through the roof. Never mind the perks like jets and yachts.
This great windfall was unearned. Nothing real backed it up. It was all a bubble. But with accounting black magic all this borrowed money — all these newly issued shares of stock (in reality, debt) that soared in price –- could be made to look like profits.
That is why corporations bought (and buy) other dead-broke corporations at such sky-high prices. They could make their own losses appear like profits.
Remember again the key thing. This huge orgy was built on the biggest debt creation in history. Debt that cannot be sustained. Debt that will bury the masses for generations to come. They will be strapped with low-paying jobs and taxes that strangle them for the next 100 years.
Junk bonds are debt of the most risky businesses. That is why their debt is rated as junk. Of all debt it has the greatest chance of never being paid.
Yet junk bonds give a yield that is not much higher than the yield of the sovereign debt of the U.S. government — the safest, highest-rated debt in the world…debt that for sure, without a doubt, will be paid in full. Insanity!
How can this be? The answer is simple and sad. Again our banker buddies have convinced the stupid money to go for high yield. So millions of people are taking on the vastly greater risk of junk bonds -– for just slightly higher potential reward. In reality they are buying the debt obligations of dead-broke monster corporations.
I repeat my often-stated refrain to you. In a debt wipeout the debt obligations of other are WORTHLESS. So get out of debt! Don’t invest in it not a penny of it. Because it is not a asset. It will be your undoing.
There is one exception to this: U.S. government debt. That may puzzle you. So let me tell you why you can lay in your bed at night, sure of two things.
One the U.S. government will pay its debt. Two the yield will plunge, in my opinion. Making the zero coupon bonds I recommend to you soar in value.
The reason is simple. The American people will be worked and taxed to death (literally), to make sure our government’s debt is paid. IT WILL NOT BE MONETIZED OR INFLATED AWAY!
Americans will give up their homes. Their cars. Their “benefits.” All to pay back this debt.
It will be UGLY! You’re already seeing this begin, with the record number of people losing their houses.
In the old system (that is coming to a end) endless debt meant the politicians didn’t have to worry. They could finance their great social experiments. They could hand out their endless mass giveaways to get votes. All financed by long-term government debt.
Now government debt is financing losses at banks, instead of government giveaways. That change will turn the world upside down. It is a new world order and not a very nice one. In fact it will usher in another dark age.
So you are clear here, we are at the “party’s over, penniless-debt-slaves” stage of the game now. Isn’t this clear? People are losing their homes, businesses and jobs. At rates never seen before.
You want a growth industry? Try flop houses, homeless shelters, prisons and food pantries. This will last for decades.
Remember that the mindless debt orgy didn’t last just five or ten years. It lasted three generations. Six decades. A hell of a lot of chickens are coming home to roost.
That has changed the world. And not in the way our clueless leaders promised either. Billions of people have been born, who know no better. They expect all these privileges -– the things people used to work, struggle and die for — as their right. And all for free.
To their minds, it all comes with their birth certificate. Life, liberty, pursuit of happiness -– plus education, health care, a home, a car, retirement.
They don’t realize everything around them is so cheap, because it’s so heavily subsidized on massive debt and slave labor.
The good times are now over. I know the politicians and Wall Street promise you otherwise. They say the green shoots party has started again. They want people to go out and borrow even more money. To stimulate the economy.
My friends, that is crazy. The WORST thing you could do is to go into MORE debt. It’s like telling a junkie trying to go cold turkey to take more heroin, so he will not feel so bad. The very solution they propose — spend more on credit — is the heart of the problem to begin with.
The depression is the price we pay for the debt addiction. Nothing can stop it. Kicking and screaming all the way, we will pay off all this senseless debt.
Individual personal debt has soared to levels unimaginable just 10 years ago. It far surpasses the ability of people to pay it back. And that debt keeps going higher.
This is why bankruptcies and foreclosures keep setting record highs. Along with poverty and homelessness. You know what I mean if you have ever been caught on the loan-shark/credit-card-debt- from-hell treadmill.
Corporations are no better. Don’t let their lying balance sheets fool you. They are broke, getting broker by the day. Which is why they can’t bring new stock issues to market. Why they can’t write their corporate bonds. Why they can’t do their IPOs to raise cash like they used to.
The suckers are out of money and credit. The ball of yarn has finally unraveled.
The bankers financed this endless credit orgy. They also are broke, losing more each quarter. Why do you think they needed trillions in bailouts -– and still can’t show real profits?
They use criminal schemes to disguise their vast debt. That’s what derivatives do. They let bankers hide debt and risk — and package it as an asset! Even though they know that debt will never be paid.
Government aids and abets them in this fraud. Why? Because the bankers aid and abet government. They give government the credit it needs , to try and buy off the masses. They were all in bed together, in the great debt lie.
Wall Street convinced over 100 million Americans to chase yield. To buy into the “high-yield, debt-based assets” b.s. They are clueless about the crap they really bought. This stuff gets more worthless by the day. Same with the “assets” that supposedly guarantee the debt. They also are dropping like a rock.
Just ask anyone who is unfortunate enough to hold mortgage paper. After the foreclosure and the final liquidation of the hahahahaha asset, they find they have lost their ass. The mortgage debt they bought as a “high-yielding investment” is only yielding huge losses.
These people did not buy high yield. They bought themselves their very own personal wipeout.
All so Wall Street and the bankers could roll the dice in the derivatives casino, rule the world, and pay themselves billions in bonuses each year.
You know what? All their gamesmanship -– all the phony-baloney accounting, their “pretending it’s a recovery” nonsense — doesn’t matter.
Because even with all their manipulations, the bankers’ incredibly sleazy instruments are still blowing up in their faces. The day comes when the gig is up. The Ponzi scheme is over. That day has come. We are at Judgment Day.
Every week we get more proof of this. One day retail sales drops further. A few days later, new home sales shock economists by falling again. Then consumer confidence crashes to new all-time lows. Unemployment, that was supposedly getting better, suddenly soars.
The bad reports never end. Of course not. It’s a depression. A deflation. Prices are dropping. Economic activity is slowing down. B.S. spin from government can’t change that.
And now for the coup de gras. Governments themselves — the source Perrier for borrowed money — the original unlimited charge cards — are going broke. En masse.
This is true in Greece (where the rioting on the street has already begun) in England. In Spain. In Portugal and Italy. It’s even true in that miracle of modern communism, China. (They do a good job hiding it.) It is spreading around the world.
Banks in these countries have lost tens of trillions of dollars or more. And that’s just for starters. The World Bank says the dead-broke banks have only gotten rid of or dealt with 25% of their bad paper. i.e. the worst is yet to come.
The past two years, governments have taken trillions of these losses off the bankers’ balance sheets. They have moved those losses over to the governments -– to the taxpayers. That is what the bailouts do.
But the losses are too great. Government cannot cover the bankers’ butts any longer. Which is why the “too big to fail” banks will be allowed to fail.
Most people know government is choking on the debt from its vast giveaway programs. This is getting worse. Millions more people are showing up at the welfare windows. These programs have reached the breaking point. Which puts government under even more pressure to come up with even more money. Money it does not have.
And most people do not know (unless they are Insiders) an even more frightening fact: government is also choking on the debt it has taken over from the dead-broke bankers. Its partners in the biggest financial crime ever committed.
So now the world’s biggest private AND public entities are wiping out. Nothing can stop the carnage that is about to spread around the globe.
Maybe the worst thing the banker whores did was to buy, resell and finance government sovereign debt.
That gave birth to the great modern socialist welfare states. It let these states exist and thrive. It made government the biggest single employer in the U.S.
Look at our nation for the past 80 years. People have been given far, far more than they produced. There is no such thing as a free lunch. So how did we do it?
The answer is obvious. Credit. We borrowed the money. So it was not a free lunch. It was a borrowed meal. And eventually you run out of credit. You must pay back ALL that borrowed money you owe.
We dumped all the hard part -– all the repayment — on FUTURE generations. On people not even born yet. Which means those people — the ones unfortunate enough to pay back our free lunches — end up getting less.
That “getting less part” is called a deflation. GOT IT? You better!
With each passing year, government’s socialist giveaway programs have grown bigger and bigger. They have compounded their vast debts for the past 40 years, 60 years or more. That is why they owe hundreds of trillions of dollars.
Over half the world’s population is on government socialistic welfare. From education, to housing, to food, to health care, to retirement. The majority of citizens in our modern democracies receive DIRECT government handouts.
Always financed by out-of-control debt. i.e. other people’s money. It’s going to be an ugly world indeed when their largesse is cut off for lack of money.
Think what the world will look like, when that happens in country after country.
Do you really expect the politicians to tell you this? That we are starting a new dark age? That the masses are about to become impoverished slaves?
Just the opposite. The sharpest minds in the world are working day and night, figuring out how to put you there. As they take your money and your freedoms. That is what Wall Street and its puppets in Washington do.
You may wonder why governments bailed out the banker whores, with trillions of your tax dollars. Why they gave them countless billions in bonuses. With almost no questions asked, and even fewer answered.
These assholes bankrupted our nation. They stole your money. They trashed the value of your home, wiped out your “guaranteed” retirement investments, and threw tens of millions of Americans out of work.
How could they get so much public money –- the greatest sums of taxpayer dollars any government ever gave any special interest group? With little more than a phone call?
Simple. They own our government. Bought and paid for. For shockingly little money, too.
But that’s not all. They also own us. They own our businesses. Our homes. Our cars.
They own anyone who needs their money to survive. Anyone who takes their credit. Which is basically the entire western world.
You and I being debt free isn’t enough. We are still beholden to them for the credit (financing) on our roads. Our sewers. Government, Our electricity. Our water sanitation services. All the basics of life, that we all take for granted.
Not much longer, I hasten to add. You better figure out how to unhook from the water meter. How to supply yourself electricity.
The bankers ‘gave’ the world 30-year mortgages. They gave us our hahaha retirements, annuities and stock market mutual funds. Their insurance companies (also a bunch of dead-broke, whore thieves) supplied our oftentimes rationed health care.
The bankers financed our cars for 48 months. Our motor homes, jet skis and exotic vacations. They let us build our airports and 100 million dollar jet liners. All on credit, that will never be paid back.
Let give you an example. The aviation industry has never made a profit. It’s been a loser since we took up our first paying passenger, Orville Wright, in 1903 at Kitty Hawk, North Carolina.
The masses have been able to fly for only one reason: airlines (and airports) were able to take on vast debt, and then roll that debt over and over. The airlines have lost far more money than they have ever made.
Massive government and banker debt supports the entire industry. Planes. Their maintenance. Airports. Air traffic control systems. All subsidized.
This debt keeps swelling. Both in amounts and terms. The date it must get paid back keeps getting moved further and further into the future. Now it stretches into the 22nd century. In reality, it will never be paid back.
Every major airport in the world is banker/government subsidized. And every one is a money loser. Same thing with the ground transport systems to the airports (roads, parking lots, trains, buses). Same with the air traffic control system, fire rescue, security systems. All government subsidized. NOT reflected in the ticket price.
These are just a few examples of the hidden unpaid debt that subsidizes our modern lifestyle. It’s that way in everything from roads to trucking to shipping. Even manufacturing.
This should help you understand why the bankers got these unbelievable government bailouts. With virtually no questions asked.
By pulling every dirty, illegal trick in the book, bankers managed to keep the whole bubble debt orgy afloat. Now it’s come to an end. The debts have grown too large. The losses from derivatives have gotten out of control. We can no longer finance (borrow) our way out of this. It’s curtains!
The theme for the next 100 years will be a much poorer world. A world where the masses are reduced to virtual slaves. They and their children will work their whole lives, to pay all this debt back.
No, we will not monetize it. We won’t inflate it away or simply default. That is another myth. A lie straight out of the pits of hell, to try and take more of your money.
Say the U.S. tried to do this. The second the world got wind of that shit, they would shut down our society. The fleeting credit we need would be gone. The lights would go out. The Homeland Security guys would not have gas for their helicopters, payroll or bullets.
So don’t kid yourself. Every stinking last dime owed will be paid in full. Including the compound interest.
We would need vastly greater amounts of new debt to support our kingly lifestyle. That money is no longer available. As a society we have borrowed all we can. Now it’s payback time.
That is why you see pay cuts right and left. Service cuts. Less and less of everything.
Even our cities are shrinking. There is not enough money to provide services to all neighborhoods. This will get worse and worse in the coming years.
The crisis the world faces is DEFLATION. You damn well better understand and prepare yourself for it. Everyone gets less.
Look, you have no excuse. You can’t say you weren’t warned. You can’t say you didn’t see it. Everything is deflating (becoming less) all around you.
It’s a brand new ball game. A new way of doing things. Not just for the ultra-poor nations. For the developed world, too.
People won’t like it. The services they take for granted are dying in a sea of red ink. Real soon now, these services will be no more.
Prepare yourself for a new world. Pay as you go. Pay for it NOW with cash. Or you don’t get it.
There will be no such thing as a social safety net. Unless you consider work camps as your “welfare rights.”
You really, really need to grasp this. Our entire way of life is based on two things. Both are about to change forever.
First, our entire infrastructure was built generations ago, when labor was dirt cheap, on the backs of starving immigrants. We financed these systems with endless debt, at 1%.
We can’t pay back that debt: we already have borrowed all the available money. We can’t refinance it. We have maxed out our credit card. D-day is coming.
Second, most everything we consumers buy in today’s world is manufactured by SLAVES. I repeat, the things that surround you carry an enormous price subsidy. They were made by slave laborers, who were paid almost nothing for their work.
They are the poor masses who work in the slave sweat shops of China. Of Asia, Latin America and Eastern Europe. They make a dollar an hour. At most.
Without them, we could not afford our clothing. We couldn’t buy clothing, our appliances. Our electronics. The toys for our children.
Not even our cars. Cars may be assembled in the U.S. and Europe. But the parts come from the slave labor colonies of the planet.
Rome’s infrastructure was built on slaves, too. Rome crumbled when it could no longer control those slaves. The northern hemisphere is crumbling for similar reasons.
We can no longer borrow to support our unsustainable lifestyle. And more and more, our slaves -– the billions of Asian workers — are not willing to put up with their extreme poverty. With their greatly lesser lot in life.
They aren’t satisfied working for a bowl of rice with a fish head in it… sleeping 20 people in a 400 square foot rickshaw “apartment”…and riding a bicycle.
A new system is about to force itself on the western world. It goes like this: don’t work, don’t eat. Grow old, get sick, you die.
No longer will people not work, and still get full benefits for years on end. They will not receive government health care, where they spend $300,000 of someone else’s money. All so tubes, high-tech machines and needles carrying exotic drugs get stuck into their veins — maybe keeping them alive another six months — in a money-losing, subsidized, institutionalized setting — where it’s a good day when they change the diapers within four hours after a bowel movement.
We will have to pay the true costs of our homes. Our roads. Our electricity. Our cars, appliances, medical treatment and retirement. Or do without. Not with funny money, financed by heavily-leveraged derivatives, that supposedly don’t come due for 30 or 50 years. We will have to pay with cash.
Workers in the west will get paid about the same as everyone else on the planet, who does the same kind of job. Which means the slaves in Asia and India will see slight wage increases. People in the “developed world” will see their pay and benefits get slashed. Over and over.
It was a nice fantasy. A great party. It lasted 60 years. 60 years of the most incredible, opulent lifestyle the masses have ever enjoyed. All bought to you by mortgaging our future on endless debt.
It’s only been 60 years since mass starvation, homelessness, and joblessness last appeared in the U.S. and Europe. People forget that. In the not-too-distant past, America had to cope with an ugly world. Funny how soon people forget the lessons of history.
I am here to tell you — like it or not, believe it or not -– that life is back. To many of you, that may sound ridiculous. But go to your nearest homeless shelter. Or check out the local free medical clinic or food pantry.
You will meet plenty of people there, who till now never had to take a handout. I think you’ll find they wholeheartedly agree with me. Our prosperity is leaving us to never return.
Try walking the inner city, if you dare. Tell me we are not going back to an uglier, more dangerous world. What do the spreading growing ghettos, gangs and poverty tell you about the future?