Wall Street’s culture of Deception (Part 1)

The unwary investor is made to believe - by a press owned by the very people who are part of the Wall Street scam that they can make a killing in the stock market if they get lucky. Over the years’ “outsiders”, small-time investors have lost billions of dollars to the “insiders” who control and manipulate the stock market.

The small time investor believes that the stock market goes up and down according to what he or she reads in the Wall Street Journal or hears about on their evening NEWS program: interest rates, inflation rates, wholesale prices, gross national product, public fears about foreign and domestic events, and the ranting of the head of the "Federal" Reserve Board.

This is all a game, a con to make the hapless investor believe that the rise and fall in stock prices is not being manipulated by the specialists. The fact is that specialists, working at the largest firms and hedge funds are creating the ups and downs of the market to bring them profits at the expense of the rest of us. In reality it’s the bankers and investment houses against the working class of America, and Congress and the While House allow this SCAM to continue.

This is how the Stock SCAM works

The insider buys stocks at the lowest possible price, using one of the magic tricks of the market called short selling (selling stocks you don't yet own in the hopes that the price will drop, so that you can purchase it back at a lower price; the difference between what you sold it for and what you purchased it back at is your profit): This parable was made famous by John D Rockefeller

• Since they control the stock prices, they simply begin lowering the prices
• They "borrow" the stock from their or another brokerage firm's pool, with the understanding that at a later date they will return the shares
• The Wall Street Con Game News will announce that stock prices dropped sharply on light trading, which is a cover for the insiders' actual manipulation of the decrease in stock prices. The Insiders don't want heavy trading and straight-line lowering of stock prices, else they might have to buy a lot of stock at a higher price than desired. So they usually lower prices through a series of ups and downs of the market, dealing with small investors' shares as they go.
• The SEC rules prohibit NYSE members from "demoralizing the market by effecting short sales at or below a price lower than that of the last sale." But insiders have an “insider loophole” allowing them to sell short on downticks (drops in stock prices) without having to report these transactions as short sales. Those same SEC rules force the unsuspecting, small-time investor to sell short only on upticks - when stock prices are higher than the last preceding price. This is a very neat scam, and small time investors aren’t even aware that they have been had.

When the insiders have purchased their inventories of stocks at the lowest possible price (let's say a million shares at an average of $20 a share: $20,000,000 investment), they then begin increasing stock prices.

• They will wait until the stock prices reach a top price where they can realize windfall profits - let's say the stock reaches the price of $40 a share.
• At this point the insiders sell their million shares at $40 a share and receive $40,000,000. A profit of $20 million is easy if the con game is fixed in your favor.

When the insiders want to buy stocks, they lower prices - and wait till the stocks are at the lowest price possible before buying. The investors have been herded into "panic buying" as the prices drop. When the specialists want to sell stocks, they raise prices and sell at the highest price. The uninformed investor is told that he or she must get in on the skyrocketing market boom. The roller-coaster of the stock market is not a natural phenomenon at all, as the Wall Street con game would have us believe. It's simply the Insiders doing their thing making billions of dollars from unsuspecting investors.

That $20 million has to come from somewhere – and it does, it comes from the small investors who didn't have a clue about what was going on.

As an example, the Panamanian-registered Pilgrim Investment Trust, controlled by the Bush family, in April 2000 was about 78% long. By the end of 2000, they were 78% short, and, by the end of 2001, that trust was 98% short. In essentially the same short position was the Houston Energy Trust, another deep offshore Republican trust whose investors include Henry Kissinger, Paul Bremer, James Baker, and George Schultz.

Get the picture.

Wall Street’s culture of Deception (Part 2)

Bank Stock Value Manipulation:

We are now aware of Lehman Bros SCAM, where they would hide billions of dollars of bad debts by selling them prior to a required reporting period and buy them back directly after the report was filed. This is known now as end-of-quarter balance sheet manipulation, the purpose was to trick investors into thinking the Bank or investment house was less leveraged than it was.

This was a form of stock value manipulation, which is illegal! It also constitutes FRAUD on the investors, who would have sold their stock had they known the truth. It is concealing the true nature and value of the company and of its stock value.

Now as it turns out, almost of all of Wall Street is based on this same phony perception, having been caught using this same Ploy, Bank of America now claims there is nothing wrong with concealing in this manner its bad assets. We respectfully disagree!

Comparing Bank of America's "average quarterly assets" and "end of quarter assets" found that, in each quarter, billions of dollars of assets conveniently disappeared briefly at the end of the quarter, only to return again at the start of the next one.

Like Lehman, Bank of America found some legal loophole in some country somewhere that allowed them to momentarily hide tens of billions of dollars of assets somewhere where Wall Street wouldn't see them. And, naturally, Bank of America thinks it's perfectly acceptable: We believe this has been a common practice on Wall Street for sometime

For those that don’t know Repo 105, Lehman Bros asset disappearance program, it was a sale and repurchase agreement by which Lehman parked about 50 billion in assets (presumably assets they did not want to discuss) overnight via a repo transaction so they would not appear on the balance sheet. Who the counter party was has still not been disclosed.

But unfortunately the Lehman executives do have one point. Repo 105 type balance sheet faking was “an old trick” and well known to anyone who cared to read balance sheets (very) carefully.

With BoA they did the very same thing, the end period assets were always lower than the average assets. Moreover it was not obvious unless you really looked because the quarterly earnings releases did not include average assets (but you could work it out because they stated return on average assets.

Bank of America was parking its assets off balance sheet at the end of every quarter for some time and had been obscuring the fact.

There must be a Counterparty

If Bank of America wanted to shove the assets off balance sheet someone (credit worthy) needed to be found to house the assets overnight. There are not that many parties credit worthy for $50 billion or more of overnight repos.

Well BoA found such a willing participant the counterparty was MUFJ. If you look you can see – the same way that MUFJ had end period assets higher than average assets and that the differences and timing roughly match. Someone had to assist BofA in its financial manipulation and that was MUFJ. MUFJ stands for (Mitsubishi UFJ Financial Group)

About MUFJ

Mitsubishi UFJ Financial Group, Inc. (MUFJ), incorporated on April 2, 2001, they are a holding company for The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Mitsubishi UFJ Trust and Banking Corporation (MUTB), Mitsubishi UFJ Securities Co., Ltd. (MUS), Mitsubishi UFJ NICOS Co., Ltd. (Mitsubishi UFJ NICOS), and other subsidiaries.

Through its subsidiaries and affiliated companies, MUFG engages in a range of financial operations, including commercial banking, investment banking, trust banking and asset management services, securities businesses, and credit card businesses, and provides related services to individual and corporate customers. In July 2008, BTMU acquired 49.375% interest in JALCARD, Inc., a wholly owned subsidiary of Japan Airlines International Co., Ltd. In November 2008, BTMU completed the acquisition of all the interest in UnionBanCal Corporation (UNBC), and as a result, UNBC became a wholly owned indirect subsidiary of MUFG.

The Company manages the underwriting of debt and equity instruments for large corporations. It also provides arrangement services relating to private placements primarily for medium-sized enterprise issuers and institutional investors. The Company advises on financing methods to meet various financing needs, including loans with derivatives, corporate bonds, commercial paper, asset-backed securities, securitization programs and syndicated loans. It also offers a range of products to meet fund management needs, such as deposits with derivatives, government bonds, debenture notes and investment funds. It also offers swaps, options and other risk-hedge programs to customers.

Well this is just the second Scam uncovered in the series, stay tuned.

Obama tied to FDIC, Wall Street Scam

It all started in June 2008, when the FDIC took control of Indymac Bank, that of itself wasn’t strange as many large banks would collapse over the type of loans and the creative insurance programs these banks invested in.

But what occurred in March 2009 will make your hair stand on edge. It displays the open corruption between the White House, The Banks, and those so well connected to the current administration and Washington insiders.

In March 2009 Indymac Bank was sold to One West Bank, the sale was for 70% of the face value of the mortgages and the HELOC’S at 58%

But the government guaranteed 80% to 95% of the original loan amount, for a short sale or a foreclosure.

Example:
Loan Amount $ 478,000
Add six months interest for failed payments
$ 485,000
One West Bank paid FDIC $ 334,600
Short sale amount $ 241,000
FDIC Guarantee $ 388,000
FDIC paid One West Bank $ 147,000

One West Bank received for the short sale a total of:
$ 241,000
$ 147,000
__________
$ 388,000 a $53,400 windfall plus

The Bank on a short sale took a note from the seller for the shortfall in the amount of $90,000 for a profit of= $143,400

One West Bank made a hefty profit from the taxpayers on this one transaction and it worked the same way on a foreclosure

Now we can see why it benefits the banks to Foreclose or complete a short sale. But wait!

The owners of One West Bank are none other than:
1. George Soros - Obama’s main contributor whom he has already paid back with a 2bn dollar Grant to one of his corporations for off shore oil drilling, and the US has no benefit in the oil:
2. John Paulson - A relative of Treasury Secretary Hank Paulson former Chairman and Chief Executive Officer of Goldman Sachs.

And a former Goldman Sachs VP

Obama Takes good care of his financial supporters and often it’s with our money!

The End of Reality ~ As We Know It!

I have been informed on more than one occasion that the Banks who created the financial meltdown, (due to the fraudulent loans they made), are now living in a sort of never- never land, punishing the victims of their crime, a crime so extensive and extreme that it can only be characterized as a crime against humanity. They want the property, but that aside they want our blood and our ability to survive, first they take the house then evict the owner, leaving some 4.5% of Nevada homes “Vacant”, yes Vacant—and subject to vandalism--yet they force the family pet to a kill shelter, and some families forced to live on the street. First they destroy the family unit then they attempt to destroy the little that is left over. At a very minimum human decency decries- Why not allow these people to stay in the home and rent it back after the foreclosure until the house has been sold?

The banking system has now set limits for those they have victimized. If you are facing foreclosure, there are things you no longer can do, e.g. (1) you can’t qualify for a good job, as you are no longer trust worthy,(2) you can not rent a decent house or apartment, landlords are afraid you won’t pay the rent, (3) your credit cards will most likely be cancelled, and (4) if you attempt to save your home by filing Bankruptcy, you can’t get a bank account, and (5) you can no longer qualify for insurance.

It seems that the people in charge of the banks who earn literally millions of dollars really need a reality check, perhaps if we cut their pay to the level of the working class, like the rest of us, or lay off all in management, they might lose “their” home to foreclosure and a lesson might be learned. That lesson would be what its like to live in the real world.

Banking has always been a corrupt industry a strange environment devoid of common sense, emotion and passion, where the apathetic rule, a land where the emotionally challenged thrive. Bankers have shown that they are nothing more than a legalized scam, protected by government, passionless; and indifferent to the suffering they have unleashed upon society. With this in mind there is a solution, we might consider removing all our money from the banking system, and like the famous walls of Jericho we can watch as the system comes crumbling down.

As the reader can guess I am angry.