Posted by nesaraaustralia ⋅ October 27, 2012 ⋅ Leave a Comment
Over the last week and a half, high level JP Morgan executives
have dumped over $6 million in shares in what experts have described as
Anyone believe JPM’s October 12th earnings report which beat
expectations? Looks like accounting BS engineered to dump legacy
positions on the general public.
A chorus of high-level executives inside JPMorgan (JPM)
are selling down their stakes in the company, in what some experts are
citing as “unusual” activity within the nation’s largest bank by
CNBC reports that JPM execs have dumped $6 million in the past 10 days!:
“In sum, executives on JP Morgan’s operating
committee have reaped proceeds greater than $6 million since October
15th — a move that appears uncharacteristic for the bank, according to
Ben Silverman, director of research at InsiderScore.com, which tracks
insider buying and selling activity.
“This is an unusual cluster of sales in that we typically don’t see
this many insiders at the company [JPMorgan] selling at the same time,”
Silverman said. “We look at events like this as a negative event for the
Every exec but Blythe and Jamie are dumping the stock:
“On Oct. 19, Mary Erdoes, CEO of JP Morgan Asset
Management, sold 40,000 shares at $42.46 each, for roughly $1.7 million
On Oct. 17, John Donnelly, director of human resources, sold 40% of
his JPM stock in his first insider transaction: Cashing in $1.1 million
in shares at $43.29 apiece.
Two days earlier, executives across investment, consumer and mortgage
banking made big sales. On Oct. 15 – the first business day
post-earnings – Michael Cavanagh, the newly installed co-CEO of the
investment bank, sold 40,000 at $42.00, cashing in roughly $1.7 million.
Gordon Smith, Chase co-CEO of Consumer & Community Banking, cashed
in 28,300 shares in a sale totaling $1.2 million. Frank Bisignano, the
bank’s co-COO and head of JPM’s Mortgage Banking unit, sold $844,900
worth of stock at $42.25.“
Perhaps Bill Murphy was merely a little early on his timing and JP Morgan is in fact facing major imminent losses?
The Eurozone Money Supply Is Contracting Again
All key measures of the eurozone money supply contracted in
September and private credit fell at an accelerating pace, dashing hopes
of a quick recovery from recession.
Data from the European Central Bank show that the tentative rebound in the money supply over the summer may have stalled again in September.
The broad M3 gauge — watched by experts as an early warning signal
for the economy a year or so ahead — shrank by €30bn and is now down by
€143bn since April. This is highly unusual.
The narrow M1 gauge watched for signals of activity six months head
has held up better but also contracted in September, falling by €16bn.
“The message is clear,” said Lars Christensen from Danske Bank. “The
ECB needs to stop obsessing about fiscal issues and do real quantitative
easing (QE) if it wants to stop the eurozone going the way of Japan.”
** Cash-strapped Europe nations are not shy about taxing rich
Greek Deadline – Sunday Evening
According to the Greek press, the Troika now demands that Greece resolve its objections to labor reforms (which as reported earlier have forced the ruling coalition to split) by Sunday night, or else…
The implication, it appears, is that absent a compromise, the next
Troika tranche of €31.5 billion is not coming, and Greece is out. And
while the market is sanguine about this outcome, we are once again at
the bargaining table, where nobody knows just who has the upper hand in
Mutually Assured and quite Destructive bailout negotiations: Greece or
Germany. From Kathimerini: “The
government is facing a Sunday deadline for a full agreement on the
package of measures that will see it cash in the next bailout tranche of
31.5 billion euros. The three-day extension it got in order to
get maximum backing within the three-party coalition will be necessary
as minor partner Democratic Left insists on an improvement in the terms
concerning labor reforms that it staunchly opposes.” Will Greece come
through in the clutch? And if not, just what happens with the EURUSD on
Sunday night as Greece calls the Troika’s bluff? Deja vu shades of early
summer, and plunging European risk come to mind…
Germany’s Finance Minister: “Nothing decided” on Greece’s euro membership.
Student Loan Defaults on the Rise as Debt Crisis Worsens
Until now. With annual tuition rates alone well into five figures
even for traditionally bargain-basement institutions like land-grant
universities, potential students and their hard-pressed parents are very
likely to start looking for alternatives to baccalaureate degrees. Although college enrollments remain steady so far, so did housing purchases — right up to the eve of the crash.
Student loan debt is different from credit card debt and mortgage
debt in one very significant way: It cannot be discharged via
bankruptcy. Student debt, under current law, is with the borrower,
interest accrual and all, for as long as it takes to pay it off, unless
extreme circumstances like total disability supervene. Creditors
almost never forgive student debt, because they know that, backed by
the federal government, they can continue to pile on interest and pursue
delinquent borrowers literally for their entire lives.
In better times, few student borrowers were even aware of
such obligations. But with defaults on the rise, aggressive and
less-than-fully-truthful tactics employed by lenders to entice students
to borrow money on what seem like attractive terms are now getting wide
publicity — as are banks’ increasingly aggressive efforts to track down
and shake down borrowers in default.
Japan Is In Danger of Imminent Technical Default, could technically happen as early as December
Japan has no problem with demand for its bonds – the Bank of Japan is
buying plenty and there’s tons of demand via domestic savings – but it
may be approaching a supply shock if Japanese politicians can’t figure
out how to get deficit legislation passed.
That’s the gist of a warning today from BofA Merrill Lynch strategist
Brooks Thompson, who sent a note to clients this morning with the
title: Did You Know Japan’s Fiscal Cliff is Right Around the Corner?
Here are Thompson’s thoughts on the conflict:
The current political stalemate has delayed legislation to finance
the budget and Japan’s coffers are expected to run-out by end
of November, which would lead to technical default. I don’t want
to overly exaggerate, but I’d say this is a much more current and
(somewhat) serious reality than the BOJ buying foreign bonds.
There are a lot of interests or inquiries regarding foreign bond buying by the BOJ, but I have not heard one inquiry about Japan being on the brink of default. We’re not talking about 3yrs, 5yrs or 10yrs from now, this could technically happen as early as December. Of
course no one believes that Japanese politicians would actually allow
the country to default, but just as the fiscal cliff in the U.S. is a
reality, the political stalemate in Japan makes this unthinkable possibility a bit of a reality.
90% Of Corporate Forecasts See Results Below Wall Street Consensus And A Massive Estimates Cut Across The Board Imminent!!
As of Tuesday midday, among S&P 500 companies, 35
out of 39 firms, or 90%, that gave forecasts have provided an earnings
outlook that guides below the Wall Street consensus, according to John
Butters, senior earnings analyst at FactSet. That’s even worse
than the 78% negative forecast rate going into third-quarter earnings
season, which was the lowest recorded by FactSet since it began tracking
the data in 2006.
Similarly, among S&P 500 companies, 25 out of 28, or 89%, have said fourth-quarter revenue will come in below consensus.
Downward Earnings Revisions Are A Game-Change For The Stock Market
In the face of a world-wide slowdown, the European sovereign debt
crisis, dysfunction in Washington and the fiscal cliff, two major props
have been behind the upward move of the market—-the vigorous gains in
corporate earnings and
the Fed’s determination to keep monetary policy ultra-easy into
mid-2015. Now one of these bulwarks—-earnings—– are in the process of
reversing to the downside, leaving only the Fed to stem the tide against
the force of household debt deleveraging.
For those companies reporting 3rd quarter results, earnings were down an average of 3.9% and revenues up only 0.4%. Moreover, results for the 4th quarter may be even worse. Of 39 S&P 500 companies providing 4th quarter
guidance, 35 indicated results below the current consensus while 25 of
28 forecast that revenues, too, would fall short of the consensus.
Companies cutting 4th quarter estimates included Caterpillar, 3M, DuPont, Texas Instruments, United Technologies, Advance Micro Devices, Microsoft, IBM and Intel. Consensus estimates for the 4th quarter
now look for a year-over-year earnings increase of 8.3% and a revenue
increase of 2.7%. With the current round of downward revisions, and
probably even more ahead, these estimates are sure to come down. In
addition the global slowdown makes it highly likely that 2013 earnings
estimates are too high as well, indicating that P/E ratios are
significantly higher than the “Street” believes.
G.Soros Unloads All Investments in Major Financial Stocks; Invests Over $130 Million In Gold. Preparing For Something BIG?
In a harbinger of what may be coming our way in the Fall of 2012,
billionaire financier George Soros has sold all of his equity positions
in major financial stocks according to a 13-F report filed with the SEC for the quarter ending June 30, 2012.
Soros, who manages funds through various accounts in the US and the
Cayman Islands, has reportedly unloaded over one million shares of stock
in financial companies and
banks that include Citigroup (420,000 shares), JP Morgan (701,400
shares) and Goldman Sachs (120,000 shares). The total value of the stock
sales amounts to nearly $50 million.
What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiring some 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.
When a major global player with direct ties to the White House, Wall Street, and the banking system starts off-loadingstocks and starts stacking gold, it suggests a very serious market move is set to happen.
While often lambasted for his calls to centralize global banking,
increase government intervention in the economy and his support of what
he has called an “emergence of the new world order,” if there’s anyone
with an inside track of where things are headed next it’s Soros.
Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG
If you want to figure out what is going to happen next in the financial markets,
carefully watch what the insiders are doing. Those that are “connected”
have access to far better sources of information than the rest of us
have, and if they hear that something big is coming up they will often
make very significant moves with their money in anticipation of what is
about to happen.
Right now, Wall Street insiders and central banks all around the globe are making some very unusual moves.
In fact, they appear to be rapidly preparing for something really
big. So exactly what are they up to? In a previous article entitled “Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?“, I speculated that they may be preparing for a financial meltdown of some sort. As I noted in that article, more than 600 banking executives have
resigned from their positions over the past 12 months, and I have been
personally told that a substantial number of Wall Street bankers have
been shopping for “prepper properties” this summer.
But now even more evidence has emerged that quiet preparations are
being made for an imminent financial collapse. That doesn’t guarantee
that something will happen or won’t happen. Like any good detective, we
are gathering clues and trying to figure out what the evidence is
Perhaps, The Collapse Is Already In Process: Thousands have their cash frozen after collapse of Banksia Financial Group
Another Lehman moment? A start to Australia Bank runs?
Auditors gave Banksia Securities a clean bill of health less than four
weeks before its collapse!!
Just image how many American Financial companies are insolvent at the moment and are being given “clean bills of heath.”
Auditors gave Banksia Securities a clean bill of health less than
four weeks before its collapse last night, its latest accounts show.
The non-bank lender’s fall into receivers’ hands has left thousands
of investors in limbo over the fate of about $660 million in
On September 27, accountants signed off on accounts that found “no significant changes in the state of affairs” during the year.
Further, “no matters or circumstances
have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the company,” the
report said. The sign-off on the company’s 2012 full-year accounts by
the chartered accountants Richmond Sinnott & Delahunty in Bendigo
came less than a month before receivers McGrathNicol were called in.
AUSSIE FINANCIAL DOOM: Banksia Financial Group GONE!!
Thousands of hard working Aussies are in serious financial doom after the collapse of Banksia Financial Group..
RETIREES, schools and sporting clubs are in shock and fearful about
the fate of their investments following the collapse of Banksia
Thousands of people hundreds of millions of dollars in losses after the
shock collapse of Banksia Financial Group. Receivers McGrathNicol took
charge of the non-bank financial firm, based in Kyabram in central
Victoria, and froze investments on Thursday after the Banksia board
found the company faced insolvency.
Iconic NY Steakhouse ‘Gallagher’s,’ Which Survived Great Depression, Is Closing Due To Economic Reason
The Department of Labor’s WARN (Worker Adjustment and Retraining
Notification) website may have been exempt from layoff notices related
to the fiscal cliff, but it still provides a sufficiently (bleak)
complete picture about the real nature of layoffs and business cycle in
general in America’s busiest city. Which is why it was precisely using
the WARN website that we learned that one of New York’s most historic
steakhouses, “NY’s Prime Steakhouse since 1927″ Gallagher’s, located on
52nd street, and which survive the great depression, is shutting down on
January 16. Surely neither the surging price of meat, nor the ability
of patrons to spend charge $46.95 for an 18 ounce sirloin, has had any
impact on the decision to close this iconic restuarant which survived
the Great Depression, but failed to survive Tim Geithner’s “recovery“.
Thanks to: http://nesaraaustralia.com