SAN FRANCISCO (MarketWatch) -- Massachusetts has subpoenaed Morgan Stanley MS +0.91% over its handling of sensitive information on Facebook FB -8.90% ahead of the social media website's multi-billion dollar initial public offering, media reports said Tuesday. The state's securities division issued the subpoena following a Reuters report that Morgan Stanley cut its revenue outlook on Facebook just before the IPO and discussed it with select institutional investors.
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Opinions of this statement.
Peter Schiff argued that the crisis of 2008 is nothing compared to what is coming. The government stimulus programs have made the situation worse, in that they prevent free market forces from correcting the situation, he commented, adding that the real problem with the US economy is that interest rates are too low. These low rates contribute to economic structural problems, he explained-- we borrow and spend too much, and we don't invest or save enough. If we keep the rates low indefinitely, we're going to completely destroy the dollar, which will unleash a far worse crisis than if we actually dealt with the problem, he continued. Schiff favors an overhaul of Social Security (which he called a kind of Ponzi scheme)-- no benefits should go to the wealthy, and further, everyone expecting something from government should take less, he said.
Peter Schiff argued that the crisis of 2008 is nothing compared to what is coming. The government stimulus programs have made the situation worse, in that they prevent free market forces from correcting the situation, he commented, adding that the real problem with the US economy is that interest rates are too low. These low rates contribute to economic structural problems, he explained-- we borrow and spend too much, and we don't invest or save enough. If we keep the rates low indefinitely, we're going to completely destroy the dollar, which will unleash a far worse crisis than if we actually dealt with the problem, he continued. Schiff favors an overhaul of Social Security (which he called a kind of Ponzi scheme)-- no benefits should go to the wealthy, and further, everyone expecting something from government should take less, he said.
Yeah strong US$ will hurt US exports.
I think 50/50 chance the ex professor Princeton dude will extend the Twist when it ends in June.
Still hold a small position of DELL...ucking:
By The Time Operation Twist 1 Is Over, The Fed Will Have Quietly Completed 40% Of Operation Twist 2 As Well
Submitted by Tyler Durden on 05/20/2012 - 21:36
Ben Bernanke Ben Bernanke Bill Gross Goldman Sachs goldman sachs System Open Market Account Yield Curve
By the time Operation Twist (1) ends in just over 40 days time, on June 30, Fed Chairman Ben Bernanke, according to his previously announced "loose" target, will hope to have extended the average maturity of all bonds in the System Open Market Account (SOMA) to a record of roughly 100 months from 75 month at the onset of the program in October 2011. After all the sole purpose of Twist was to load up the Fed's portfolio with duration, forcing the rest of the market to shift its investing curve even further into risky assets, as the Fed will have effectively onboarded the bulk of securities in the 3-4% return interval. Now as we showed back in early April, hopes that the Fed will simply continue with Operation Twist 2 after the end of "season" 1, as suggested by some clueless "access journalists" who merely relay what they are told by higher powers, are completely misguided as the Fed simply does not have enough short-term securities (1-3 years) to sell, and would have at most 2 months of inventory for a continued sterilized operation. Which however, does not mean that the Fed can not be quietly ramping up its operations in the ongoing Twisting episode. Because as Stone McCarthy demonstrates, as of the past week, the Fed has already surpassed its 100 month maturity target of 100 months, and is at 102.82 months as of May 16. And this is with 6 more weeks of Twist to go: at the current rate of SOMA purchases, the Fed will have a total portfolio average maturity of just shy of 110 months by June 30! Which means that contrary to market expectations of what the Fed's own stated goal may have been, Bernanke will have gobbled up nearly 40% more long-dated Flow relative to estimates! In other words, Ben does not need to do a full blown Operation Twist 2 episode: by the time Twist 1 is over, he will have attained nearly 40% of the goals of the next potential sterilized operation.
Hard to say what the end game will be and I have my doubts it will end in dollar collapse (at least in our lifetimes) but at some point with certainty the American empire will collapse and US fiat will be worthless ... date impossible to say (likely after we all dead)
For the dollar to collapse we must become isolated from the world and also reach a point where the world no longer depends on us ... The world needs us more then we need them at it will take a long time still for that to change ...
All Ben is doing is prolonging the depression at the expense of the have nots to the benefit of the status quo/elite... and sending this country on the path of Mexico north where you have a few uber wealthy people and hoards of uneducated poor people ....
We'll see if at some point there is a huge upheaval and "rebalancing" of the ever increasing divide between the rich and the poor ... My guess and hope is yes ...
Japan kinda a preview of sorts for us obviously our economy's are quite different (Japan extremely export heavy) but the means to combat bubble collapses etc...are treated the exact same way same ....
Think the probability of Japan going completely
up in 30 years or less are extremely high... if the western world is headed for that fate Japan most certainly will go under before us .... And they got a decade head start on us .... They peaked in 90 and been "printing" /zero rates ever since
Think the probability of Japan going completely
up in 30 years or less are extremely high... if the western world is headed for that fate Japan most certainly will go under before us .... And they got a decade head start on us .... They peaked in 90 and been "printing" /zero rates ever since
