WTI Crude Plunges To 7-Month Low (But Don't Get Too Excited)

At $91.70, front-month WTI crude prices have dropped to a fresh 7-month-low this morning. The mainstream media is already crowing of what this means for gas prices and how that will be an implicit “tax-cut” – even though gas prices remain at or near record-high levels for this time of year. The issue with this thinking, of course, is Brent crude (which more closely correlates to US gasoline prices) remains stubbornly high at around $107 as the spread between WTI and Brent surges over $15.

 

 

Chart: Bloomberg


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/FV0tK9nuU2s/story01.htm Tyler Durden

“Heartbroken” Christie “Surprised At Stupidity”; Apologizes; Fires Bunch Of Staff; “Crazy” To Think He’d Resign

Governor Christie says he is "doing a lot of soul-searching," over the "callous indifference" displayed by his former campaign manager Bill Stepien (since asked to leave) and Chief of Staff Bridget Kelly (since fired). He was "disturbed by the tone and behavior and attitude" of the emails he saw (following his workout). The "heartbroken", "not a bully", Governor accepted responsibility for his staff's actions and is embarrased and humiliated… but "it's crazy man" to think he would resign…

Via The Hill… the problem…

…emails obtained by The Hill and other publications on Wednesday raised significant questions about that explanation. They showed a top Christie aide, deputy chief of staff Bridget Ann Kelly, appearing to collude with David Wildstein, a Christie appointee at the Port Authority, to create traffic in the town.

 

“Time for some traffic problems in Fort Lee,” Kelly emailed to Wildstein after the mayor failed to back Christie.

 

“Got it,” Wildstein emailed back.

Press Briefing Post Mortem

Status and Apologies…

  • *GOV CHRISTIE APOLOGIZES TO NJ, FT. LEE, LEGISLATURE
  • *CHRISTIE SAYS HE'S EMBARRASSED, HUMILIATED
  • *CHRISTIE SAYS DOING A LOT OF SOUL-SEARCHING OVER INCIDENT
  • *CHRISTIE SAYS HE WAS 'BLIND SIDED' YESTERDAY MORNING
  • *CHRISTIE SAYS SURPRISED AT "STUPIDITY'' OF THOSE INVOLVED
  • *CHRISTIE SAYS HE WAS TOLD LANE CLOSURES WERE FOR TRAFFIC STUDY
  • *CHRISTIE SAYS HE ASKED STAFF FOR INFORMATION ON LANE CLOSURES
  • *CHRISTIE SAYS SENIOR STAFF SAID THEY HAD NO INFORMATION
  • *CHRISTIE SAYS SAW EMAILS FOR THE FIRST TIME YESTERDAY MORNING (after his workout)
  • *CHRISTIE SAYS THERE WERE POLITICAL OVERTONES IN EMAILS
  • *CHRISTIE SAYS HE AND WILDSTEIN WEREN'T FRIENDS OR ACQUAINTANCES
  • *CHRISTIE SAYS THERE IS NO JUSTIFICATION FOR BEHAVIOR
  • *CHRISTIE WILL HOLD PERSONAL INTERVIEWS WITH SENIOR STAFF
  • *CHRISTIE SAYS HE HASN'T COMPLETED STAFF INTERVIEWS YET
  • *"I AM HEARTBROKEN'' CHRISTIE SAYS, THAT TRUST BETRAYED
  • *CHRISTIE SAYS HE'S RESPONSIBLE FOR WHAT HAPPENED
  • *CHRISTIE SAYS STAFF "FELL SHORT''

 

Actions:

  • *CHRISTIE SAYS ACTION TAKEN AGAINST STEPIEN BY 7 PM YESTERDAY
  • *CHRISTIE SAYS STEPIEN WILL NOT BE CONSIDERED FOR PARTY CHAIR
  • *CHRISTIE SAYS STEPIEN WON'T BE CONSIDERED FOR NJ GOP CHAIRMAN
  • *CHRISTIE SAYS STEPIEN WITHDRAWS CONSULTANCY JOB
  • *CHRISTIE SAYS BEHAVIOR OF AIDES UNACCEPTABLE
  • *CHRISTIE SAYS BRIDGET KELLY FIRED, SAYS SHE LIED TO HIM
  • *CHRISTIE SAYS NOT INTERESTED IN BRIDGET KELLY'S EXPLANATION
  • *CHRISTIE SAYS BRIDGET KELLY FIRED BY 9 A.M. YESTERDAY

Kelly and Christie in a better mood…

Next Steps:

  • *U.S. ATTORNEY IN NEW JERSEY PROBING CHRISTIE TRAFFIC SCANDAL
  • *CHRISTIE TRAVELING TO FT. LEE TODAY TO SEEK MEETING W/ MAYOR
  • *CHRISTIE WILL SEEK TO APOLOGIZE TO FT. LEE MAYOR, RESIDENTS
  • *CHRISTIE:NOT BEGINNING PROCESS OF CONSIDERING PRESIDENTIAL RUN

And summing it all up…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Zwx-bq-KVdk/story01.htm Tyler Durden

"Heartbroken" Christie "Surprised At Stupidity"; Apologizes; Fires Bunch Of Staff; "Crazy" To Think He'd Resign

Governor Christie says he is "doing a lot of soul-searching," over the "callous indifference" displayed by his former campaign manager Bill Stepien (since asked to leave) and Chief of Staff Bridget Kelly (since fired). He was "disturbed by the tone and behavior and attitude" of the emails he saw (following his workout). The "heartbroken", "not a bully", Governor accepted responsibility for his staff's actions and is embarrased and humiliated… but "it's crazy man" to think he would resign…

Via The Hill… the problem…

…emails obtained by The Hill and other publications on Wednesday raised significant questions about that explanation. They showed a top Christie aide, deputy chief of staff Bridget Ann Kelly, appearing to collude with David Wildstein, a Christie appointee at the Port Authority, to create traffic in the town.

 

“Time for some traffic problems in Fort Lee,” Kelly emailed to Wildstein after the mayor failed to back Christie.

 

“Got it,” Wildstein emailed back.

Press Briefing Post Mortem

Status and Apologies…

  • *GOV CHRISTIE APOLOGIZES TO NJ, FT. LEE, LEGISLATURE
  • *CHRISTIE SAYS HE'S EMBARRASSED, HUMILIATED
  • *CHRISTIE SAYS DOING A LOT OF SOUL-SEARCHING OVER INCIDENT
  • *CHRISTIE SAYS HE WAS 'BLIND SIDED' YESTERDAY MORNING
  • *CHRISTIE SAYS SURPRISED AT "STUPIDITY'' OF THOSE INVOLVED
  • *CHRISTIE SAYS HE WAS TOLD LANE CLOSURES WERE FOR TRAFFIC STUDY
  • *CHRISTIE SAYS HE ASKED STAFF FOR INFORMATION ON LANE CLOSURES
  • *CHRISTIE SAYS SENIOR STAFF SAID THEY HAD NO INFORMATION
  • *CHRISTIE SAYS SAW EMAILS FOR THE FIRST TIME YESTERDAY MORNING (after his workout)
  • *CHRISTIE SAYS THERE WERE POLITICAL OVERTONES IN EMAILS
  • *CHRISTIE SAYS HE AND WILDSTEIN WEREN'T FRIENDS OR ACQUAINTANCES
  • *CHRISTIE SAYS THERE IS NO JUSTIFICATION FOR BEHAVIOR
  • *CHRISTIE WILL HOLD PERSONAL INTERVIEWS WITH SENIOR STAFF
  • *CHRISTIE SAYS HE HASN'T COMPLETED STAFF INTERVIEWS YET
  • *"I AM HEARTBROKEN'' CHRISTIE SAYS, THAT TRUST BETRAYED
  • *CHRISTIE SAYS HE'S RESPONSIBLE FOR WHAT HAPPENED
  • *CHRISTIE SAYS STAFF "FELL SHORT''

 

Actions:

  • *CHRISTIE SAYS ACTION TAKEN AGAINST STEPIEN BY 7 PM YESTERDAY
  • *CHRISTIE SAYS STEPIEN WILL NOT BE CONSIDERED FOR PARTY CHAIR
  • *CHRISTIE SAYS STEPIEN WON'T BE CONSIDERED FOR NJ GOP CHAIRMAN
  • *CHRISTIE SAYS STEPIEN WITHDRAWS CONSULTANCY JOB
  • *CHRISTIE SAYS BEHAVIOR OF AIDES UNACCEPTABLE
  • *CHRISTIE SAYS BRIDGET KELLY FIRED, SAYS SHE LIED TO HIM
  • *CHRISTIE SAYS NOT INTERESTED IN BRIDGET KELLY'S EXPLANATION
  • *CHRISTIE SAYS BRIDGET KELLY FIRED BY 9 A.M. YESTERDAY

Kelly and Christie in a better mood…

Next Steps:

  • *U.S. ATTORNEY IN NEW JERSEY PROBING CHRISTIE TRAFFIC SCANDAL
  • *CHRISTIE TRAVELING TO FT. LEE TODAY TO SEEK MEETING W/ MAYOR
  • *CHRISTIE WILL SEEK TO APOLOGIZE TO FT. LEE MAYOR, RESIDENTS
  • *CHRISTIE:NOT BEGINNING PROCESS OF CONSIDERING PRESIDENTIAL RUN

And summing it all up…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Zwx-bq-KVdk/story01.htm Tyler Durden

JPMorgan To Exit Foodstamp, Other Prepaid Cards Business

Mess with us, we’ll mess with you. That is the message one can derive from JPMorgan’s surprise announcement that it plans to “sell or wind down its business of issuing prepaid cards for corporate payrolls and government tax refunds and benefits.” Which also includes the infamous Electronic Benefits Transfer, or foodstamps, card. According to Reuters, the product, which has been offered with cash and treasury services to companies and governments, “had become a headache of risks in operations and regulations, according to a person familiar with the matter who was not authorized to speak publicly.”

Curiously, it was just over two years ago when JPM said this about its EBT business:

“This business is a very important business to JP Morgan,” Christopher Paton, the company’s managing director of treasury services, told Bloomberg News in 2011. “It’s an important business in terms of its size and scale. We also regard it as very important in the sense that we are delivering a very useful social function. We are a key part of this benefit delivery mechanism. Right now volumes have gone through the roof in the past couple of years or so … The good news from JP Morgan’s perspective is the infrastructure that we built has been able to cope with that increase in volume.”

Guess the social function isn’t that important any more. However, along with the responsibilities, JPM is losing a substantial revenue stream:

Just how lucrative JP Morgan’s EBT state contracts are is hard to say, because total national data on EBT contracts are not reported. But thanks to a combination of public-records requests and contracts that are available online, here’s what we do know: 18 of the 24 states JP Morgan handles have been contracted to pay the bank up to $560,492,596.02 since 2004. Since 2007, Florida has been contracted to pay JP Morgan $90,351,202.22. Pennsylvania’s seven-year contract totaled $112,541,823.27. New York’s seven-year contract totaled $126,394,917.

That’s a lot of money that one doesn’t easily give up on. But that’s what JPM just did. Or in other words, JPM just told the government which has been going after it relentlessly for the past year, forcing JPM to rack up some $25 billion in litigation reserves, “you can find someone else to manage your wholesale welfare program for nearly 50 million Americans.”

There is more:

Last month JPMorgan warned some 465,000 holders of the cards that their personal data may have been accessed by computer hackers who attacked its network in July.

 

Government regulators are focusing on whether corporate payroll programs that use the cards have sufficient safeguards against burdening employees with fees.

 

For the past year the company has been moving to simplify its operations after its risk controls and guards against money laundering were found deficient by regulators.

According to JPMorgan’s statement, the bank “will explore a full range of options for its prepaid card business, including a sale.” In the meantime, it will continue to support current clients and cardholders. The decision does not affect Chase customers holding credit, debit or prepaid “Liquid” cards, the company said. Needless to add here, the last thing the precarious “recovery” needs right now are glitches with the EBT system, which as we saw last October when the EBT system briefly went “dark” nearly plunged the nation into a wholesale panic. Then again, such is quid pro quo life when the government bites one of the biggest hands that feed it.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/ybbO6t30Wuk/story01.htm Tyler Durden

Janet Yellen – The Nation’s New Chief Slumlord

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Janet Yellen's role as the nation's slumlord is masked by her apparent distance from the Fed's money spigot and the resulting institutional ownership of the nation's rental housing stock.

Please welcome the nation's new chief slumlord, Janet Yellen. The previous top slumlord, Ben Bernanke, has retired from the position of Chief Slumlord (i.e. chair of the Federal Reserve) to the accolades of those who benefited from his extraordinary transfer of wealth from the many to the few.

Why is the chairperson of the Fed the nation's top slumlord? Allow me to explain.We only need to understand two facts to understand the Fed's role as Slumlord.

1. Rental housing has long been a decentralized, locally owned industry. Over 90% of rental properties under 50 units have historically been owned by individuals or couples: the nation's landlords have historically been Mom and Pop, middle-class folks who saved capital and used those savings to buy a single-family home or small apartment building (duplex, triplex, four-plex) as an investment that they own and manage.

Very few amass a huge portfolio of properties, as few have the income or assets (i.e. the collateral) to leverage the purchase of dozens of rental properties.

Buildings up to four units qualify for conventional mortgages; small rental properties are not considered commercial properties like strip malls or large apartment complexes.

This diverse, local ownership provided a wide spectrum of residential rentals. The wider the variety of rentals and owners, the greater the diversity of prices, locales and requirements. This is the essence of free enterprise: sellers (landlords) and buyers (renters) agree to price and conditions in a dynamic, open and adaptive marketplace.

2. No Mom and Pop real estate investor can compete with financial institutions who can borrow unlimited sums of money from the Federal Reserve at near-zero rates of interest.

Let's start by asking what happens to the price of real estate when mortgages fall from 8% interest to 4%: prices basically double, because buyers can "afford" to pay more at low rates of interest.

When conventional mortgage rates are 8%, a rental that costs $200,000 requires a 30% down payment in cash (because the buyers are not owner-occupants) or $60,000. The simple interest on a $140,000 mortgage is about $11,200 annually. (Let's use simple annual interest for simplicity's sake.)

At 4%, the price can double to $400,000, with a 30% down of $120,000 and a mortgage of $280,000, and the mortgage accrues the same $11,200 in annual interest.

Declining interest rates push real estate prices higher.

At first glance, this doubling in price doesn't seem to affect the cost of ownership. But that is deceptive; consider how many households can scrape up $120,000 in cash compared to the number who can scrape up $60,000. The higher the price, the bigger the down payment required. The higher the down payment, the fewer the number of households who can accumulate that much cash.

To households that live paycheck-to-paycheck, both sums are out of reach. But a significant number of middle class households could accumulate $60,000: such a sum could come from a family house that was sold and divided amongst the offspring, for example, or a Solo 401K that allows the retirement fund to own real estate, or from saving $5,000 a year for 12 years.

The Federal Reserve's Zero Interest Rate Policy (ZIRP) was designed to push real estate prices higher. The Fed's public justification was "the wealth effect": the idea was that as the family home increased in value, homeowners would begin to borrow and spend more money due to their increased home equity.

The second Fed goal was to increase home sales by lowering mortgage rates, theoretically enabling more marginal buyers to buy a home. But since prices rise as mortgage rates drop, this goal is mooted unless marginal buyers are also given a free ride on down payments and qualifying income, i.e. offered near-zero down payments and no-document mortgage qualification processes.

But zero interest rates and unlimited liquidity don't just push real estate prices higher–they give institutions with access to the Fed's nearly-free money an unbeatable advantage over Mom and Pop real estate investors.

Imagine being able to borrow $400,000 at 1% with zero collateral. You can now buy the rental property for cash, and pay only $4,000 in simple annual interest. And you didn't have to put up a dollar of actual collateral to buy the property.

Consider the huge advantages you now have over the competing Mom and Pop bidders. Sellers typically prefer cash offers, so your cash offer (of Fed money) is more attractive than Mom and Pop's loan-based bid.

If the price jumps to $500,000, Mom and Pop are blown out of the water: they don't have the additional $30,000 cash required as collateral.

Thanks to the Fed, you don't need any collateral. You can borrow $500,000 as easily as $400,000, and the increase in annual interest is trivial: a mere $1,000.

Now consider the operating costs: you have a $7,000 annual advantage because you have access to the Fed's nearly-free money. Mom and Pop have to pay $11,200 in simple annual interest, while you pay only $4,000. A property that is break-even to Mom and Pop reaps you a $7,000 annual profit, just because you can borrow money from the Fed for next to nothing.

Now multiply the $400,000 and the $7,000 by 1,000. Now you can buy $400,000,000 of rental properties and skim $7,000,000 in annual profits, just from the advantage of having access to the Fed's quantitative easing (QE) nearly-free money.

Any advantages you can accrue from economies of scale from owning tens of thousands of rental properties are also yours to keep, courtesy of the Fed.

Now you understand why Janet Yellen is the nation's new top slumlord. Her policies of unlimited liquidity, QE and zero interest rates directly enable financial Elites to beat out Mom and Pop rental housing investors and buy tens of thousands of rental properties at will.

Access to free money and near-zero interest rates gives institutional buyers a built-in advantage over Mom and Pop rental property owners: no collateral and free profits from super-low rates available to those closest to the Fed's QE money spigot.

Institutional ownership turns the rental housing stock into a Fed-enabled financial monoculture. Individual Mom and Pop owners may not require a credit check, or they might not raise the rents very often; the odds that you will be treated as a human being are higher because the scale of the operation is small and local.

To Fed-enabled Institutional landlords, you are an income stream to be skimmed.You will be processed and managed remotely, and variations are not allowed, as they mess up the profit machine.

Fed-enabled Institutional landlords may or may not hire competent, responsive managerial firms to manage their thousands of properties: from the point of view of Fed-enabled Institutional landlords, the lower the costs, the larger the profits. One way to lower costs is to not respond to tenant complaints or requests for service. Another is to hire the lowest-cost (and likely understaffed) management firm.

Janet Yellen's role as the nation's slumlord is masked by her apparent distance from the Fed's money spigot and the resulting institutional ownership of the nation's rental housing stock. But guess what, Chairperson Yellen: we're not fooled. Your phony facade of "progressivism" doesn't mask your real role as the nation's top slumlord. 
 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/9I-wHniAiZw/story01.htm Tyler Durden

Janet Yellen – The Nation's New Chief Slumlord

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Janet Yellen's role as the nation's slumlord is masked by her apparent distance from the Fed's money spigot and the resulting institutional ownership of the nation's rental housing stock.

Please welcome the nation's new chief slumlord, Janet Yellen. The previous top slumlord, Ben Bernanke, has retired from the position of Chief Slumlord (i.e. chair of the Federal Reserve) to the accolades of those who benefited from his extraordinary transfer of wealth from the many to the few.

Why is the chairperson of the Fed the nation's top slumlord? Allow me to explain.We only need to understand two facts to understand the Fed's role as Slumlord.

1. Rental housing has long been a decentralized, locally owned industry. Over 90% of rental properties under 50 units have historically been owned by individuals or couples: the nation's landlords have historically been Mom and Pop, middle-class folks who saved capital and used those savings to buy a single-family home or small apartment building (duplex, triplex, four-plex) as an investment that they own and manage.

Very few amass a huge portfolio of properties, as few have the income or assets (i.e. the collateral) to leverage the purchase of dozens of rental properties.

Buildings up to four units qualify for conventional mortgages; small rental properties are not considered commercial properties like strip malls or large apartment complexes.

This diverse, local ownership provided a wide spectrum of residential rentals. The wider the variety of rentals and owners, the greater the diversity of prices, locales and requirements. This is the essence of free enterprise: sellers (landlords) and buyers (renters) agree to price and conditions in a dynamic, open and adaptive marketplace.

2. No Mom and Pop real estate investor can compete with financial institutions who can borrow unlimited sums of money from the Federal Reserve at near-zero rates of interest.

Let's start by asking what happens to the price of real estate when mortgages fall from 8% interest to 4%: prices basically double, because buyers can "afford" to pay more at low rates of interest.

When conventional mortgage rates are 8%, a rental that costs $200,000 requires a 30% down payment in cash (because the buyers are not owner-occupants) or $60,000. The simple interest on a $140,000 mortgage is about $11,200 annually. (Let's use simple annual interest for simplicity's sake.)

At 4%, the price can double to $400,000, with a 30% down of $120,000 and a mortgage of $280,000, and the mortgage accrues the same $11,200 in annual interest.

Declining interest rates push real estate prices higher.

At first glance, this doubling in price doesn't seem to affect the cost of ownership. But that is deceptive; consider how many households can scrape up $120,000 in cash compared to the number who can scrape up $60,000. The higher the price, the bigger the down payment required. The higher the down payment, the fewer the number of households who can accumulate that much cash.

To households that live paycheck-to-paycheck, both sums are out of reach. But a significant number of middle class households could accumulate $60,000: such a sum could come from a family house that was sold and divided amongst the offspring, for example, or a Solo 401K that allows the retirement fund to own real estate, or from saving $5,000 a year for 12 years.

The Federal Reserve's Zero Interest Rate Policy (ZIRP) was designed to push real estate prices higher. The Fed's public justification was "the wealth effect": the idea was that as the family home increased in value, homeowners would begin to borrow and spend more money due to their increased home equity.

The second Fed goal was to increase home sales by lowering mortgage rates, theoretically enabling more marginal buyers to buy a home. But since prices rise as mortgage rates drop, this goal is mooted unless marginal buyers are also given a free ride on down payments and qualifying income, i.e. offered near-zero down payments and no-document mortgage qualification processes.

But zero interest rates and unlimited liquidity don't just push real estate prices higher–they give institutions with access to the Fed's nearly-free money an unbeatable advantage over Mom and Pop real estate investors.

Imagine being able to borrow $400,000 at 1% with zero collateral. You can now buy the rental property for cash, and pay only $4,000 in simple annual interest. And you didn't have to put up a dollar of actual collateral to buy the property.

Consider the huge advantages you now have over the competing Mom and Pop bidders. Sellers typically prefer cash offers, so your cash offer (of Fed money) is more attractive than Mom and Pop's loan-based bid.

If the price jumps to $500,000, Mom and Pop are blown out of the water: they don't have the additional $30,000 cash required as collateral.

Thanks to the Fed, you don't need any collateral. You can borrow $500,000 as easily as $400,000, and the increase in annual interest is trivial: a mere $1,000.

Now consider the operating costs: you have a $7,000 annual advantage because you have access to the Fed's nearly-free money. Mom and Pop have to pay $11,200 in simple annual interest, while you pay only $4,000. A property that is break-even to Mom and Pop reaps you a $7,000 annual profit, just because you can borrow money from the Fed for next to nothing.

Now multiply the $400,000 and the $7,000 by 1,000. Now you can buy $400,000,000 of rental properties and skim $7,000,000 in annual profits, just from the advantage of having access to the Fed's quantitative easing (QE) nearly-free money.

Any advantages you can accrue from economies of scale from owning tens of thousands of rental properties are also yours to keep, courtesy of the Fed.

Now you understand why Janet Yellen is the nation's new top slumlord. Her policies of unl
imited liquidity, QE and zero interest rates directly enable financial Elites to beat out Mom and Pop rental housing investors and buy tens of thousands of rental properties at will.

Access to free money and near-zero interest rates gives institutional buyers a built-in advantage over Mom and Pop rental property owners: no collateral and free profits from super-low rates available to those closest to the Fed's QE money spigot.

Institutional ownership turns the rental housing stock into a Fed-enabled financial monoculture. Individual Mom and Pop owners may not require a credit check, or they might not raise the rents very often; the odds that you will be treated as a human being are higher because the scale of the operation is small and local.

To Fed-enabled Institutional landlords, you are an income stream to be skimmed.You will be processed and managed remotely, and variations are not allowed, as they mess up the profit machine.

Fed-enabled Institutional landlords may or may not hire competent, responsive managerial firms to manage their thousands of properties: from the point of view of Fed-enabled Institutional landlords, the lower the costs, the larger the profits. One way to lower costs is to not respond to tenant complaints or requests for service. Another is to hire the lowest-cost (and likely understaffed) management firm.

Janet Yellen's role as the nation's slumlord is masked by her apparent distance from the Fed's money spigot and the resulting institutional ownership of the nation's rental housing stock. But guess what, Chairperson Yellen: we're not fooled. Your phony facade of "progressivism" doesn't mask your real role as the nation's top slumlord. 
 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/9I-wHniAiZw/story01.htm Tyler Durden

500 Years of History Shows that Mass Spying Is Always Aimed at Crushing Dissent

No matter which government conducts mass surveillance, they also do it to crush dissent, and then give a false rationale for why they’re doing it.

For example, the U.S. Supreme Court noted in Stanford v. Texas (1965):

While the Fourth Amendment [of the U.S. Constitution] was most immediately the product of contemporary revulsion against a regime of writs of assistance, its roots go far deeper. Its adoption in the Constitution of this new Nation reflected the culmination in England a few years earlier of a struggle against oppression which had endured for centuries. The story of that struggle has been fully chronicled in the pages of this Court’s reports, and it would be a needless exercise in pedantry to review again the detailed history of the use of general warrants as instruments of oppression from the time of the Tudors, through the Star Chamber, the Long Parliament, the Restoration, and beyond.

 

What is significant to note is that this history is largely a history of conflict between the Crown and the press. It was in enforcing the laws licensing the publication of literature and, later, in prosecutions for seditious libel, that general warrants were systematically used in the sixteenth, seventeenth, and eighteenth centuries. In Tudor England, officers of the Crown were given roving commissions to search where they pleased in order to suppress and destroy the literature of dissent, both Catholic and Puritan. In later years, warrants were sometimes more specific in content, but they typically authorized of all persons connected of the premises of all persons connected with the publication of a particular libel, or the arrest and seizure of all the papers of a named person thought to be connected with a libel.

By “libel”, the court is referring to a critique of the British government  which the King or his ministers didn’t like … they would label such criticism “libel” and then seize all of the author’s papers.

The Supreme Court provided interesting historical details in the case of Marcus v. Search Warrant (1961):

The use by government of the power of search and seizure as an adjunct to a system for the suppression of objectionable publications … was a principal instrument for the enforcement of the Tudor licensing system. The Stationers’ Company was incorporated in 1557 to help implement that system, and was empowered

 

“to make search whenever it shall please them in any place, shop, house, chamber, or building or any printer, binder or bookseller whatever within our kingdom of England or the dominions of the same of or for any books or things printed, or to be printed, and to seize, take hold, burn, or turn to the proper use of the aforesaid community, all and several those books and things which are or shall be printed contrary to the form of any statute, act, or proclamation, made or to be made. . . .

 

An order of counsel confirmed and expanded the Company’s power in 1566,  and the Star Chamber reaffirmed it in 1586 by a decree

 

“That it shall be lawful for the wardens of the said Company for the time being or any two of the said Company thereto deputed by the said wardens, to make search in all workhouses, shops, warehouses of printers, booksellers, bookbinders, or where they shall have reasonable cause of suspicion, and all books [etc.] . . . contrary to . . . these present ordinances to stay and take to her Majesty’s use. . . . ”

 

Books thus seized were taken to Stationers’ Hall where they were inspected by ecclesiastical officers, who decided whether they should be burnt. These powers were exercised under the Tudor censorship to suppress both Catholic and Puritan dissenting literature.

 

Each succeeding regime during turbulent Seventeenth Century England used the search and seizure power to suppress publications. James I commissioned the ecclesiastical judges comprising the Court of High Commission

 

“to enquire and search for . . . all heretical, schismatical and seditious books, libels, and writings, and all other books, pamphlets and portraitures offensive to the state or set forth without sufficient and lawful authority in that behalf, . . . and the same books [etc.] and their printing presses themselves likewise to seize and so to order and dispose of them . . . as they may not after serve or be employed for any such unlawful use. . . .”

 

The Star Chamber decree of 1637, reenacting the requirement that all books be licensed, continued the broad powers of the Stationers’ Company to enforce the licensing laws.  During the political overturn of the 1640′s, Parliament on several occasions asserted the necessity of a broad search and seizure power to control printing. Thus, an order of 1648 gave power to the searchers

 

“to search in any house or place where there is just cause of suspicion that Presses are kept and employed in the printing of Scandalous and lying Pamphlets, . . . [and] to seize such scandalous and lying pamphlets as they find upon search. . . .”

 

The Restoration brought a new licensing act in 1662. Under its authority, “messengers of the press” operated under the secretaries of state, who issued executive warrants for the seizure of persons and papers. These warrants, while sometimes specific in content, often gave the most general discretionary authority. For example, a warrant to Roger L’Estrange, the Surveyor of the Press, empowered him to “seize all seditious books and libels and to apprehend the authors, contrivers, printers, publishers, and dispersers of them,” and to

 

search any house, shop, printing room, chamber, warehouse, etc. for seditious, scandalous or unlicensed pictures, books, or papers, to bring away or deface the same, and the letter press, taking away all the copies. . . .]”

 

***

 

Although increasingly attacked, the licensing system was continued in effect for a time even after the Revolution of 1688, and executive warrants continued to issue for the search for and seizure of offending books. The Stationers’ Company was also ordered

 

“to make often and diligent searches in all such places you or any of you shall know or have any probable reason to suspect, and to seize all unlicensed, scandalous books and pamphlets. . . .”

 

And even when the device of prosecution for seditious libel replaced licensing as the principal governmental control of the press,  it too was enforced with the aid of general warrants — authorizing either the arrest of all persons connected with the publication of a particular libel and the search of their premises or the seizure of all the papers of a named person alleged to be connected with the publication of a libel.

And see this.

General warrants were largely declared illegal in Britain in 1765.  But the British continued to use general warrants in the American colonies.  In fact, the Revolutionary War was largely launched to stop the use of general warrants in the colonies.  King George gave various excuses of why general warrants were needed for the public good, of course … but such excuses were all hollow.

The New York Review of Books notes that the American government did not start to conduct mass surveillance against the American people until long after the Revolutionary War ended … but once started, the purpose was to crush dissent:

In the United States, political spying by the federal government began in the early part of the twentieth century, with the creation of the Bureau of Investigation in the Department of Justice on July 1, 1908. In more than one sense, the new agency was a descendant of the surveillance practices developed in France a century earlier, since it was initiated by US Attorney General Charles Joseph Bonaparte, a great nephew of Napoleon Bonaparte, who created it during a Congressional recess. Its establishment was denounced by Congressman Walter Smith of Iowa, who argued that “No general system of spying upon and espionage of the people, such as has prevailed in Russia, in France under the Empire, and at one time in Ireland, should be allowed to grow up.”

 

Nonetheless, the new Bureau became deeply engaged in political surveillance during World War I when federal authorities sought to gather information on those opposing American entry into the war and those opposing the draft. As a result of this surveillance, many hundreds of people were prosecuted under the 1917 Espionage Act and the 1918 Sedition Act for the peaceful expression of opinion about the war and the draft.

 

But it was during the Vietnam War that political surveillance in the United States reached its peak. Under Presidents Lyndon Johnson and, to an even greater extent, Richard Nixon, there was a systematic effort by various agencies, including the United States Army, to gather information on those involved in anti-war protests. Millions of Americans took part in such protests and the federal government—as well as many state and local agencies—gathered enormous amounts of information on them. Here are just three of the numerous examples of political surveillance in that era:

  • In the 1960s in Rochester, New York, the local police department launched Operation SAFE (Scout Awareness for Emergency). It involved twenty thousand boy scouts living in the vicinity of Rochester. They got identification cards marked with their thumb prints. On the cards were the telephone numbers of the local police and the FBI. The scouts participating in the program were given a list of suspicious activities that they were to report.
  • In 1969, the FBI learned that one of the sponsors of an anti-war demonstration in Washington, DC, was a New York City-based organization, the Fifth Avenue Peace Parade Committee, that chartered buses to take protesters to the event. The FBI visited the bank where the organization maintained its account to get photocopies of the checks written to reserve places on the buses and, thereby, to identify participants in the demonstration. One of the other federal agencies given the information by the FBI was the Internal Revenue Service.

***

 

The National Security Agency was involved in the domestic political surveillance of that era as well. Decades before the Internet, under the direction of President Nixon, the NSA made arrangements with the major communications firms of the time such as RCA Global and Western Union to obtain copies of telegrams. When the matter came before the courts, the Nixon Administration argued that the president had inherent authority to protect the country against subversion. In a unanimous decision in 1972, however, the US Supreme Court rejected the claim that the president had the authority to disregard the requirement of the Fourth Amendment for a judicial warrant.

 

***

 

Much of the political surveillance of the 1960s and the 1970s and of the period going back to World War I consisted in efforts to identify organizations that were critical of government policies, or that were proponents of various causes the government didn’t like, and to gather information on their adherents. It was not always clear how this information was used. As best it is possible to establish, the main use was to block some of those who were identified with certain causes from obtaining public employment or some kinds of private employment. Those who were victimized in this way rarely discovered the reason they had been excluded.

 

Efforts to protect civil liberties during that era eventually led to the destruction of many of these records, sometimes after those whose activities were monitored were given an opportunity to examine them. In many cases, this prevented surveillance records from being used to harm those who were spied on. Yet great vigilance by organizations such as the ACLU and the Center for Constitutional Rights, which brought a large number of court cases challenging political surveillance, was required to safeguard rights. The collection of data concerning the activities of US citizens did not take place for benign purposes.

 

***

 

Between 1956 and 1971, the FBI operated a program known as COINTELPRO, for Counter Intelligence Program. Its purpose was to interfere with the activities of the organizations and individuals who were its targets or, in the words of long-time FBI Director J. Edgar Hoover, to “expose, disrupt, misdirect, discredit or otherwise neutralize” them. The first target was the Communist Party of the United States, but subsequent targets ranged from the Reverend Martin Luther King, Jr. and his Southern Christian Leadership Conference to organizations espousing women’s rights to right wing organizations such as the National States Rights Party.

 

A well-known example of COINTELPRO was the FBI’s planting in 1964 of false documents about William Albertson, a long-time Communist Party official, that persuaded the Communist Party that Albertson was an FBI informant. Amid major publicity, Albertson was expelled from the party, lost all his friends, and was fired from his job. Until his death in an automobile accident in 1972, he tried to prove that he was not a snitch, but the case was not resolved until 1989, when the FBI agreed to pay Albertson’s widow $170,000 to settle her lawsuit against the government.

 

COINTELPRO was eventually halted by J. Edgar Hoover after activists broke into a small FBI office in Media, Pennsylvania, in 1971, and released stolen documents about the program to the press. The lesson of COINTELPRO is that any government agency that is able to gather information through political surveillance will be tempted to use that information. After a time, the passive accumulation of data may seem insufficient and it may be used aggressively. This may take place long after the information is initially collected and may involve officials who had nothing to do with the original decision to engage in surveillance.

Indeed, during the Vietnam war, the NSA spied on Senator Frank Church because of his criticism of the Vietnam War. The NSA also spied on Senator Howard Baker.

Senator Church – the head of a congressional committee investigating Cointelpro – warned in 1975:

[NSA's] capability at any time could be turned around on the American people, and no American would have any privacy left, such is the capability to monitor everything: telephone conversations, telegrams, it doesn’t matter. There would be no place to hide.  [If a dictator ever took over, the N.S.A.] could enable it to impose total tyranny, and there would be no way to fight back.

This is, in fact, what’s happened …

Initially, American constitutional law experts say that the NSA is doing exactly the same thing to the American people today which King George did to the Colonists … using “general warrant” type spying.

And it is clear that the government is using its massive spy programs in order to track those who question government policies. See this, this, this  and this.

Todd Gitlin – chair of the PhD program in communications at Columbia University, and a professor of journalism and sociology –  notes:

Under the Freedom of Information Act, the Partnership for Civil Justice Fund (PCJF) has unearthed documents showing that, in 2011 and 2012, the Department of Homeland Security (DHS) and other federal agencies were busy surveilling and worrying about a good number of Occupy groups — during the very time that they were missing actual warnings about actual terrorist actions.

 

From its beginnings, the Occupy movement was of considerable interest to the DHS, the FBI, and other law enforcement and intelligence agencies, while true terrorists were slipping past the nets they cast in the wrong places.  In the fall of 2011, the DHS specifically asked its regional affiliates to report on “Peaceful Activist Demonstrations, in addition to reporting on domestic terrorist acts and ‘significant criminal activity.’”

 

Aware that Occupy was overwhelmingly peaceful, the federally funded Boston Regional Intelligence Center (BRIC), one of 77 coordination centers known generically as “fusion centers,” was busy monitoring Occupy Boston daily.  As the investigative journalist Michael Isikoff recently reported, they were not only tracking Occupy-related Facebook pages and websites but “writing reports on the movement’s potential impact on ‘commercial and financial sector assets.’”

 

It was in this period that the FBI received the second of two Russian police warnings about the extremist Islamist activities of Tamerlan Tsarnaev, the future Boston Marathon bomber.  That city’s police commissioner later testified that the federal authorities did not pass any information at all about the Tsarnaev brothers on to him, though there’s no point in letting the Boston police off the hook either.  The ACLU has uncovered documents showing that, during the same period, they were paying close attention to the internal workings of…Code Pink and Veterans for Peace.

 

***

 

In Alaska, Alabama, Florida, Mississippi, Tennessee, and Wisconsin, intelligence was not only pooled among public law enforcement agencies, but shared with private corporations — and vice versa.

 

Nationally, in 2011, the FBI and DHS were, in the words of Mara Verheyden-Hilliard, executive director of the Partnership for Civil Justice Fund, “treating protests against the corporate and banking structure of America as potential criminal and terrorist activity.”  Last December using FOIA, PCJF obtained 112 pages of documents (heavily redacted) revealing a good deal of evidence for what might otherwise seem like an outlandish charge: that federal authorities were, in Verheyden-Hilliard’s words, “functioning as a de facto intelligence arm of Wall Street and Corporate America.”  Consider these examples from PCJF’s summary of federal agencies working directly not only with local authorities but on behalf of the private sector:

 

• “As early as August 19, 2011, the FBI in New York was meeting with the New York Stock Exchange to discuss the Occupy Wall Street protests that wouldn’t start for another month. By September, prior to the start of the OWS, the FBI was notifying businesses that they might be the focus of an OWS protest.”

 

• “The FBI in Albany and the Syracuse Joint Terrorism Task Force disseminated information to… [22] campus police officials… A representative of the State University of New York at Oswego contacted the FBI for information on the OWS protests and reported to the FBI on the SUNY-Oswego Occupy encampment made up of students and professors.”

 

• An entity called the Domestic Security Alliance Council (DSAC), “a strategic partnership between the FBI, the Department of Homeland Security, and the private sector,” sent around information regarding Occupy protests at West Coast ports [on Nov. 2, 2011] to “raise awareness concerning this type of criminal activity.” The DSAC report contained “a ‘handling notice’ that the information is ‘meant for use primarily within the corporate security community. Such messages shall not be released in either written or oral form to the media, the general public or other personnel…’ Naval Criminal Investigative Services (NCIS) reported to DSAC on the relationship between OWS and organized labor.”

 

• DSAC gave tips to its corporate clients on “civil unrest,” which it defined as running the gamut from “small, organized rallies to large-scale demonstrations and rioting.” ***

 

• The FBI in Anchorage, Jacksonville, Tampa, Richmond, Memphis, Milwaukee, and Birmingham also gathered information and briefed local officials on wholly peaceful Occupy activities.

 

• In Jackson, Mississippi, FBI agents “attended a meeting with the Bank Security Group in Biloxi, MS with multiple private banks and the Biloxi Police Department, in which they discussed an announced protest for ‘National Bad Bank Sit-In-Day’ on December 7, 2011.”  Also in Jackson, “the Joint Terrorism Task Force issued a ‘Counterterrorism Preparedness’ alert” that, despite heavy redactions, notes the need to ‘document…the Occupy Wall Street Movement.’”

 

***

 

In 2010, the American Civil Liberties Union of Tennessee learned … that the Tennessee Fusion Center was “highlighting on its website map of ‘Terrorism Events and Other Suspicious Activity’ a recent ACLU-TN letter to school superintendents.  The letter encourages schools to be supportive of all religious beliefs during the holiday season.”

 

***

 

Consider an “intelligence report” from the North Central Texas fusion center, which in a 2009 “Prevention Awareness Bulletin” described, in the ACLU’s words, “a purported conspiracy between Muslim civil rights organizations, lobbying groups, the anti-war movement, a former U.S. Congresswoman, the U.S. Treasury Department, and hip hop bands to spread tolerance in the United States, which would ‘provide an environment for terrorist organizations to flourish.’”

 

***

 

And those Virginia and Texas fusion centers were hardly alone in expanding the definition of “terrorist” to fit just about anyone who might oppose government policies.  According to a 2010 report in the Los Angeles Times, the Justice Department Inspector General found that “FBI agents improperly opened investigations into Greenpeace and several other domestic advocacy groups after the Sept. 11 terrorist attacks in 2001, and put the names of some of their members on terrorist watch lists based on evidence that turned out to be ‘factually weak.’”  The Inspector General called “troubling” what the Los Angeles Times described as “singling out some of the domestic groups for investigations that lasted up to five years, and were extended ‘without adequate basis.’

 

Subsequently, the FBI continued to maintain investigative files on groups like Greenpeace, the Catholic Worker, and the Thomas Merton Center in Pittsburgh, cases where (in the politely put words of the Inspector General’s report) “there was little indication of any possible federal crimes… In some cases, the FBI classified some investigations relating to nonviolent civil disobedience under its ‘acts of terrorism’ classification.”

 

***

 

In Pittsburgh, on the day after Thanksgiving 2002 (“a slow work day” in the Justice Department Inspector General’s estimation), a rookie FBI agent was outfitted with a camera, sent to an antiwar rally, and told to look for terrorism suspects.  The “possibility that any useful information would result from this make-work assignment was remote,” the report added drily.

 

“The agent was unable to identify any terrorism subjects at the event, but he photographed a woman in order to have something to show his supervisor.  He told us he had spoken to a woman leafletter at the rally who appeared to be of Middle Eastern descent, and that she was probably the person he photographed.”

 

The sequel was not quite so droll.  The Inspector General found that FBI officials, including their chief lawyer in Pittsburgh, manufactured postdated “routing slips” and the rest of a phony paper trail to justify this surveillance retroactively.

 

Moreover, at least one fusion center has involved military intelligence in civilian law enforcement.  In 2009, a military operative from Fort Lewis, Washington, worked undercover collecting information on peace groups in the Northwest.  In fact, he helped run the Port Militarization Resistance group’s Listserv.  Once uncovered, he told activists there were others doing similar work in the Army.  How much the military spies on American citizens is unknown and, at the moment at least, unknowable.

 

Do we hear an echo from the abyss of the counterintelligence programs of the 1960s and 1970s, when FBI memos — I have some in my own heavily redacted files obtained through an FOIA request — were routinely copied to military intelligence units? Then, too, military intelligence operatives spied on activists who violated no laws, were not suspected of violating laws, and had they violated laws, would not have been under military jurisdiction in any case.  During those years, more than 1,500 Army intelligence agents in plain clothes were spying, undercover, on domestic political groups (according to Military Surveillance of Civilian Politics, 1967-70, an unpublished dissertation by former Army intelligence captain Christopher H. Pyle). They posed as students, sometimes growing long hair and beards for the purpose, or as reporters and camera crews.  They recorded speeches and conversations on concealed tape recorders. The Army lied about their purposes, claiming they were interested solely in “civil disturbance planning.”

Yes, we hear echoes to the Cointelpro program of the 60s and 70s … as well as King George’s General Warrants to the Colonies … and the Star Chamber of 15th century England.

Because – whatever governments may say – mass surveillance is always used to crush dissent.

Notes:

1. Spying is also aimed at keeping politicians in check.

2. The East German Stasi obviously used mass surveillance to crush dissent and keep it’s officials in check … and falsely claimed that spying was necessary to protect people against vague threats.   But poking holes in the excuses of a communist tyranny is too easy.  The focus of this essay is to show that the British and American governments have used this same cynical ruse for over 500 years.

3. For ease of reading, we deleted the footnotes from the two Supreme Court opinions.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/0IRlvsfZSxk/story01.htm George Washington

Hedge Fund Slams Portuguese Bonds With 64 Page Slideshow

Traditionally, hedge fund managers that go public with multi-page slideshows bashing this or that asset, usually end up in tears (see Bill Ackman) as long as said asset is not some microcap, illiquid stock. That, however, has not stopped David Salanic of Tortus Capital Management to not only mass distribute a presentation highlighting his latest and greatest short idea but to create a website that implicitly highlights his investment thesis. The site in question is called http://rehabilitatingportugal.com/, and the asset that Salanic is bearish to quite bearish on, are Portuguese bonds.

Of course, slamming Portugal bonds on the day when the country returns to the capital markets by selling its first €3.25 billion 5 year bond offering (which as Bloomberg reports was nearly 4 times oversubscribed) at 330 bps over midswaps in the post-bailout era, makes it doubly risky. That said, the herd momentum is always fickle, and what everyone is buying today may be dumped en masse tomorrow. And Tortus’ reminder that nothing has been fixed in Portugal, and in fact that the country desperately needs a Greek-style PSI debt exchange which wipes out a portion of the country’s debt, may be just that catalyst. Or then again, a la Ackman, the market may just ramp Portuguese bonds even higher and force Salanic to cover at a major loss (assuming he has exposure).

Either way, the market will decide. Or whatever passes for a market these days.

Cutting to the chase it, Tortus’ underlying thesis is simple: Portugal’s situation is not sustainable because it is drowning in debt…

… And it is. But so is every other European country when one adds up all the “adjusted” if all too real, debt figures. What makes Portugal so special?

* * *

Below is the verbal summary of the Tortus presentation:

Portugal’s Status Quo Is Not Sustainable

  • The Troika Calls the Portuguese Program “On Track” But It Is Actually Very Much “Off Track”
  • The Troika’s Forecast of Falling Debt/GDP Starting 2014 is Wishful…
  • …but Not Attainable Because “Kicking the Can Down the Road” Has Made the Problem Worse
  • Portugal’s Government Bonds Are Subordinated To A Mountain of Debt…
  • …but the Troika Program Had Protected Portuguese Government Bonds Until Now…
  • …And Now The Portuguese State Is Left to Issue Excessive Levels of Debt in the Markets…
  • …While Competing With Portuguese Banks and Corporations For Funding…
  • …And As Fundamentals Start To Matter the Capital Market Window May Face Pressure
  • Portugal Has Excessive Public and Private Sector Debts, Highly Financed by Foreigners…
  • …Which It Can Neither Outgrow Nor Devalue
  • The Alternatives For Portuguese Workers Are Lower Pay or Fewer Jobs…
  • …Putting the People In Precarious Financial Positions
  • Portuguese People Unfairly Carry The Full Burden of The Adjustment While Speculators Profit…
  • …which Has Caused a Loss in Political Consensus…
  • …and Forcing the Constitutional Court to Reject the Government Budget Repeatedly…
  • …to Restore Some of the Lost Equality
  • High Debt Is Also Killing the Corporate Sector…
  • …As an Increasing Majority of Portuguese Corporations Cannot Sustain Their Debt Burdens…
  • … Leading to Continuously Lower Investments and More Aggressive Accounting
  • The Long-Term Growth Outlook Is Even Bleaker

 

Portugal’s Sovereign Debt Is Not Sustainable

  • Debt/GDP is the Most Commonly Used Metric…
  • …and Portugal Ranks Poorly on that Metric…
  • …but the Debt Burden Matters More…
  • …and Portugal’s Debt Burden is Too High…
  • …Especially Considering its Inability to Further Increase Tax Rates…
  • …Or Cut Government Expenditures.
  • The Debt Servicing Capacity is Low…
  • …However Growth & Structural Reforms can Increase Debt Servicing Capacity…
  • …But Only Enough to Service 70% of the Existing Debt Outstanding…

 

Portugal Already Benefits from Extraordinary Levels of Solidarity

  • Portugal Already Benefits from Very Generous Fiscal Transfers from the European Union
  • Euro-Area Central Banks Are Providing Significant Funding through the Target2 System
  • The ECB’s LTRO Program Finances 9% of The Portuguese Bank’s Liabilities
  • The ECB Already Purchased 11% of Portugal’s Sovereign Debt and 23% of its Bonded Debt
  • The EIB Has Lent More Funds to Portugal than to Any Other Country Relative to GDP
  • The European Rescue Funds EFSF and EFSM Represent 22% of Portugal’s Sovereign Debt
  • The IMF Already Represents 12% of Portugal’s Sovereign Debt
  • Europe Has Already Given Portugal an OSI Without Asking for Concessions From the Private Sector

 

Common Misconceptions

  • Misconception #1: Portuguese Growth Has Turned the Corner
  • Misconception #2: Exports Can Save Portugal
  • Misconception #3: Portugal’s Bond Exchange Was A Success
  • Misconception #4: A Portuguese PSI Would Lead to Portuguese Bank Recapitalizations
  • Misconception #5: A Portuguese PSI Would Create Contagion Risk
  • Misconception #6: Portugal Is Not Hiding Debt
  • Misconception #7: The Greek Sovereign Restructuring (PSI) Was a Mistake

And there you have it. Full presentation below – for the sake of Tortus let’s just hope Icahn doesn’t take the other side of the trade (pdf).


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/h-WHudVzkYM/story01.htm Tyler Durden

Stocks Slump With High Yield Credit Worst In 3 Weeks

USDJPY remains in charge of US equities this morning as hope sprang eternal for a few moments when the NASDAQ managed to go green for 2014 shortly after the open. However, the weakness in USDJPY began around Draghi’s speech and stocks in the US inevitably caught down to the carry unwinds. Short-dated Treasuries continue to bleed higher in yield and the 5s30s curve is now its flattest in 4 months (and 2s30s 2-month flats) Credit markets have been waving a red flag for a few days and high-yield and investment-grade credit risk is now back at its widest since Dec 20th. VIX is leaking modestly higher as it seems managers prefer to ‘sell’ than ‘hedge’ as the realization of the Fed’s QE-costs-and-benefits statement sink in.

 

NASDAQ briefly declared victory…

 

The “JPY 500” continues to trade down…

 

Credit markets continue to press wider…

 

and Treasuries continues to bear-flatten…

 

(h/t @Not_Jim_Cramer)


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/VGUj4G-sFjo/story01.htm Tyler Durden

Chris Christie Faces The ‘Bridge-Gate’ Music As US Attorney Opens Inquiry – Live Press Briefing

New Jersey Governor Chris Christie has expressed how “outraged and deeply saddened” he is by the revelations that a lone-shooter in his team would close highway lanes to exact political retribution against anyone. In the tradition of the current White House, he saw/knew/heard nothing of course. Things just escalated a little more…

  • *US ATTNY IN NJ TO OPEN INQUIRY INTO LANE CLOSURES, NYT SAYS
  • *N.J. GOV. CHRISTIE SAID TO FIRE TOP AIDE BRIDGET KELLY:NY POST

We can only hope that the ‘briefing’ includes a Q&A as the always fiery Christie will, we are sure, come out swinging.

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/u34_RCxWvqg/story01.htm Tyler Durden