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Thread: Watching the Banks

  1. #25

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    Default Re: Watching the Banks

    Whoa, major head fake! XLF:SPY ratio is now at .132.

    XLF made a H&S reversal on the weekly chart and looks like KRE is sitting on support. When these things go, be prepared for the resumption of bank closing Friday. Looks like we are at 174 now for the past year ending on last Friday.

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  3. #26

    Default Re: Watching the Banks

    Banking/Financials dropped big today ($BKX 2.36%)
    Related??
    "Crack Smoking Part Deux" [re: The Fed, Treasury, etc.]

    ..."We'll start with the fact that these charlatans get the cycle backwards - Treasury sells the debt first, not the other way around, and to do so it must find someone who has surplus in dollars - the currency in which the Treasuries are funded.
    Let's next run this little claim to exhaustion in an attempt to see if this is a clear-cut Ponzi Scheme - ask yourself why Treasury doesn't just print up and sell the entire $14 trillion in GDP every year.
    That would instantly absorb all excess capacity and result in an immediate and monstrous economic boom, right?
    Well, no, it would not.
    Were Treasury to attempt to do this it would discover what the words "failed auction" mean in short order, as there simply isn't enough existing surplus (electronically or otherwise) to absorb that supply."

    "...See, we haven't printed anything. "QE" where the reserves created are immediately deposited with The Fed is a circle-jerk. There is no money-printing going on until and unless the reserves created enter the economy in some form. So long as they remain on deposit with The Fed it is simply a pass of a $20 bill from them to you and back to them - the net monetary impact is zilch.
    To add insult to injury, Bernanke got the exact opposite reaction he was looking for! By "buying" Fannie and Freddie (along with Treasury) paper he didn't support price and suppress coupon - to the contrary, as this chart shows, as soon as he started "QE" the 10 year Treasury yield went higher, not lower, and it was the end of "QE" that marked the top the 10 year Treasury rate!
    Again: Why?

    That's simple: Credit creation against nothing (that is, not backed by actual hard collateral - that is, surplus already produced in some form), is simply a naked short against the monetary system. That is, the writer of such a position is agreeing to deliver money he does not yet have and may not be able to acquire, with nothing other than his word behind that promise.
    It doesn't matter if that short is created by a government or a private actor, with one important distinction: in a fiat currency system government can decide to emit unbacked currency to satisfy a naked short, where private parties cannot."

    "...Remember, a naked short is self-limiting because the shorted item doesn't actually exist. That is, it is counterfeiting in the purest sense; you're selling something you don't have and may not be able to acquire. The important fact to remember, however, is that a naked short will eventually unwind, and when it does, the depression of price that occurred when it was created will be reversed.

    Printed additional "shares" (or currency), on the other hand - that is, raw, unbacked emission - does the opposite - it creates permanent debasement.
    Likewise, the argument that "QE" reduced or capped rates is exactly backward. It did no such thing - it in fact caused rates to rise - that is, it supported bank THEFT via interest from ordinary Americans - exactly the opposite of the claimed intended effect!"
    [more...]
    http://market-ticker.denninger.net/
    Last edited by hessian; 07-21-2010 at 06:48 PM.
    "That's as good as money sir, those are I.O.U.'s" - from: Dumb & Dumber

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  5. #27

    Default Re: Watching the Banks

    Quote Originally Posted by hessian View Post
    Banking/Financials dropped big today ($BKX -2.36%)
    Banks/Financials jumped big today ($BKX +3.90%)

    http://stockcharts.com/h-sc/ui?s=$BK...d=p55192775979
    "That's as good as money sir, those are I.O.U.'s" - from: Dumb & Dumber


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  7. #28

    Default Re: Watching the Banks

    Curious, I checked what Index/Sector made out the best today? (This was apparently a very low volume day.) Well, looked over most of them, and best I can tell it was, yes, the $BKX at +3.15%.
    (Just something to consider...)
    http://stockcharts.com/h-sc/ui?s=$BK...d=p55192775979
    "That's as good as money sir, those are I.O.U.'s" - from: Dumb & Dumber

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  9. #29

    Default Re: Watching the Banks

    Monday, August 9th. - Stock Trends, Charts, and Commentary

    "Financials now make up 16.26% of the S&P 500 index.

    So, it would be very helpful for the S&P 500 if banks were healthier, making good profits, and trending higher.

    So, what is happening to the Banking Index? Is it moving higher, stalling, or falling? Today's chart shows the action of the Banking Index ($BKX) going back to August of 2009.

    What's clear, is that the index has been in a sideways trading range since May of this year.

    Starting in July, that range morphed into a triangular pattern whose apex will occur before the end of next week.

    What does that mean?

    It means that the Banking Index will breakout of the pattern soon, and the ensuing move should be between 10% to 13% from the breakout level.

    So ... this will either be very good, or very bad for the S&P 500."

    http://www.stocktiming.com/Monday-DailyMarketUpdate.htm

    Attachment 9823
    "That's as good as money sir, those are I.O.U.'s" - from: Dumb & Dumber

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  11. #30

    Default Re: Watching the Banks

    Just FYI, why "Watch-The-Banks"? Most here know they are the bad-guys. The crooks. The PPT has been pumping trillions to "save" them - and they got us into this mess.
    The latest, bill-on-the-Hill - is to "save" the underwater homeowners [only]. In reality, its just more of our dollars/debt that will end up going to the Banks.
    There are other reasons to watch 'em! - Its our money/our debt after all!
    (Just thought I'd add perspective on why I think this thread could be used for so much more.) VR!
    "That's as good as money sir, those are I.O.U.'s" - from: Dumb & Dumber

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  13. #31

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    Default Re: Watching the Banks

    You got that right Hessian. If these guys are down, the market will be down. Oh, how I remember 2 years ago (ancient history in the stock market) how the gurus proclaimed, "Watch the banks! We can't rally out of this credit mess without them."

    Second test of support failed on KRE and momo is to the downside especially after the failed downtrend breakout. Major divergence taking place right now.

    Attachment 9837

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  15. #32

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    Default Re: Watching the Banks

    And the downtrend plays on. It's all about lending. If anybody is doing it, these guys will show it in their price performance.

    Attachment 9968

    Attachment 9967

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  17. #33

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    Default Re: Watching the Banks

    I think you'll begin to see more bank buyouts in the immediate future - I should hopefully own a few that will go out with a nice premium.

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  19. #34

    Default Re: Watching the Banks

    Banking Index $BKX was down large today: -3.17%, an amount that gave back the last 2 days (Thurs & Friday), and then some.
    http://stockcharts.com/h-sc/ui?s=$BK...d=p55192775979

    Quote Originally Posted by Birchtree View Post
    I think you'll begin to see more bank buyouts in the immediate future - I should hopefully own a few that will go out with a nice premium.
    Birch, I agree, re: more bank buyouts likely - and also like to find info on whether bank defaults are increasing (whether any such trend is started).
    VR
    "That's as good as money sir, those are I.O.U.'s" - from: Dumb & Dumber

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  21. #35

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    Default Re: Stand back, when this sh*t hits the fan it's going to go far and wide

    This is a comprehensive read, and well worth the whole article.

    http://www.truth-out.org/shock-thera...many-more63803
    Shock Therapy for Wall Street:
    JPMorgan Suspends 56,000 Foreclosures; GMAC and BOA Many More
    Saturday 02 October 2010

    On September 30, Rep. Alan Grayson posted a devastating seven-minute video, in which he gave four real-world examples of such travesties of justice, including a man who was foreclosed on when he didn’t have a mortgage and paid cash for the home; a home that had two foreclosure suits against it because both servicers claimed ownership of the title; and a couple foreclosed on over a contested $75 late fee.
    Grayson blamed the massive foreclosure problems largely on the electronic shortcut called MERS. “The banks simply digitized mortgage titles into a privatized system, called the Mortgage Electronic Registry System (or MERS),” he said. “And it did the transfers by trading Excel spreadsheets among the banks and trusts, rather than endorsing the notes as required by their own contracts, by state real estate law and by IRS rules.” He stated that 60 million properties are recorded in the name of MERS -- 60% of the mortgages in the USA, and 97% of the loans made between 2005 and 2008.
    For all those mortgages filed in the name of MERS, say these courts, the chain of title has been irretrievably broken. Humpty Dumpty has had a great fall and cannot be put back together again.

    MERS is simply an electronic data base. On its website and in assorted court pleadings, it declares that it owns nothing. It was set up that way intentionally so that it would be “bankruptcy-remote,” something required by the credit rating agencies in order to turn the mortgages passing through it into highly rated securities that could be sold to investors. MERS not only has no assets; it has no employees. The thousands of people enlisted to sign affidavits on its behalf are merely conduits. The arrangement satisfied the ratings agencies, but it has not satisfied the courts. Increasingly, judges are holding that if MERS owns nothing, it cannot foreclose, and it cannot convey title by assignment so that the trustee for the investors can foreclose. MERS breaks the chain of title so that no one has standing to foreclose. The homes are effectively owned free and clear.

    That does not mean the homeowners don’t owe money to someone. They do. But the claim for relief is not in “law” (by virtue of an enforceable contract or rule) but in “equity” (a remedy provided just because it is fair), and MERS is not the proper plaintiff. Every MERS case involves a securitization, which means the real parties in interest are a group of investors somewhere; and before the homeowners can be made to pay, the investors have to come forward and prove not only that they are the parties owed the money, but the actual sums they are owed. In some cases they might already have been paid; for example, by insurers on credit default swaps held by the investment pool. The investors are entitled to recover in equity only so much as they are actually out of pocket, not the full amount of the original promissory notes, since they were not parties to those notes and there is no way to re-establish the chain of title.

    What About the Non-judicial Foreclosure States?

    Foreclosures have been suspended by JPMorgan, GMAC and BOA in 23 states, but what about the rest? The others are non-judicial foreclosure states, which means they allow foreclosure through a power of sale clause in a deed of trust without going to court. The presumption is that if the lender doesn’t have to prove his standing to sue before a judge, he can proceed. State laws in non-judicial states allow the sale of a property to satisfy a foreclosure as long as the trustee follows the regulations concerning notice. That would seem to violate Constitutional due process, but the United States Constitution has held that due process protections apply only when the government is involved in the taking of property. When a deed of trust and promissory note are executed between two private parties (homeowners and lenders), there is no automatic due process protection. The homeowners agreed to it in writing; case closed.

    But here’s the catch: what if the lender signing the original documents is not the party foreclosing on the property? Then it becomes a question of fact whether the foreclosing party has authority to proceed, and that makes it a judicial issue – a question of fact for the courts. If the foreclosing party can show a clear chain of title – an assignment or progression of assignments from the original lender to himself – he is home free. But courts have increasingly been holding that MERS breaks the chain of title. Foreclosure expert Neil Garfield argues that even in non-judicial foreclosure states, that means the investors have to go to court to prove their case. And when they do, they will run up against the brick wall of MERS. He concludes:

    "There will be a head-slapping moment when title carriers, attorneys, judges and administrative agencies and clerks suddenly realize that the monster created on Wall Street has its equivalent in the public records of counties across the nation. I doubt if more than 6-7% of all the foreclosures in the past 10 years have resulted in clear title delivered to anyone. And the only corrective instrument can come from the original owner. That homeowner is sitting in the catbird seat and doesn’t know it. Millions of people who THINK they have lost their homes still own them and if anyone wants a signature from those people to clear title, they are going to be required to pay dearly, which is at it should be. Eventually the purse gets returned to the victim from whom it was snatched."


    From the NY Times:
    Foreclosures Slow as Document Flaws Emerge

    The foreclosure machinery that has forced millions of Americans out of their homes is beginning to seize up as some lenders and their lawyers are accused of cutting corners in their pursuit of rapid home repossessions.

    Wall Street was examining the impact the disclosures could have on the lenders. Moody’s Investors Service has placed the servicer ratings of GMAC and Chase on review for possible downgrade.

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  23. #36

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    Default Re: Stand back, when this sh*t hits the fan it's going to go far and wide

    Quote Originally Posted by crws View Post
    Phase 2, notably for you Floridians
    Fired worker says home foreclosure firm forged documents
    Attorneys and staff members forged signatures and changed dates, casually passed around notary stamps, and notarized stacks of blank documents to be filled in later, said Tammie Lou Kapusta, in an interview with attorney general's staff.


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