Archive for August, 2014

This One Lawsuit Could Finally Hold Corzine Accountable

3 | By Shah Gilani

Thank you, every one of you, for the hundreds of comments you contributed here on my posts about federal departments stockpiling ammunition and the eventual collapse of the dollar.

I’m going to follow up on the ammo and dollar collapse pieces soon. I’m working on getting “official” responses and will put together a series of pieces on what to look for if a dollar collapse is coming, how to survive it and how we might actually come out ahead from it.

Stay tuned.

Meanwhile, following up on another issue that riles all of us, there’s new news on Jon S. Corzine and the collapse of MF Global Holdings Ltd.

First, the good news: It looks like MF Global’s customers will get all their money back.

The next bit of good news is that yesterday an honest and inspired judge, U.S. District Judge Victor Marrero of the Southern District of New York, ordered MF Global’s former accounting firm, PricewaterhouseCoopers, to face a lawsuit it wanted to have dismissed.

If this lawsuit goes to a jury, it’s going to be extremely illuminating…

Feds’ Explanation for Ammo Buys Isn’t Very Illuminating

39 | By Shah Gilani

I wrote Thursday's column after my well-connected friend informed me his high-in-the-ranks Department of Homeland Security buddy told him DHS was preparing for the collapse of the U.S. dollar. This weekend I did a lot of digging on the subject of...

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The Feds Are Stockpiling Ammo – Here’s What We’re Going to Do

290 | By Shah Gilani

This is a warning. I’m not kidding.

I heard something yesterday that blew me away.

I can’t further corroborate it, but I trust the source.

My friends know I like to target shoot. I don’t hunt, because I can’t kill anything living, but I like guns. Maybe it has something to do with wanting to be James Bond when I was a kid… OK, I still want to be 007.

As other target shooters know, it’s gotten harder and harder to get ammunition.

Fo a few years now, all kinds of stuff have been going around on the Internet about why ammunition is hard to get. I’ve read a bunch of things, and friends send me links to articles all the time.

But a friend I trust just shared some news that shocked me. I want you to hear this news, too.

Here’s Where Socialism Intrudes on Our American Dream

30 | By Shah Gilani

It’s yet another prime example of “The strong get more while the weak ones slave.” Private equity shops and institutional players are buying and packaging (securitizing) nonperforming mortgages and selling those mortgages to mutual funds and themselves.

On the surface, the U.S. Department of Housing and Urban Development (HUD) wants to minimize the cost to taxpayers. After all, we have to cover the insurance guarantees the Federal Housing Administration (FHA) made on loans it backed but are now nonperforming or in foreclosure.

That’s really nice of HUD and the FHA, thinking about us taxpayers. Maybe they should have thought about us when they agreed to guarantee payment on loans to less-than-prime borrowers who only have to put down 3% to get their loans.

But, whatever, they’re from the government…

HFT Rats Find New Targets Even as They Flee Banks

13 | By Shah Gilani

Rats are fleeing their listing ships.

Of course, that’s not surprising.

The Financial Times reported yesterday that high-frequency traders are leaving investment banks for hedge funds, prop trading houses and their own startups.

Oh, you didn’t realize that investment banks – in other words, too-big-to-fail banks – had high-frequency trading (HFT) desks?

Surprise, surprise, surprise. HFT isn’t the exclusive purview of specialized trading shops.

HFT is a proven money-raking machine, and today I’m going to tell you that’s why it’s part of most so-called investment banks’ trading operations…

Connecting the Dots on the DOJ’s Latest Moves

10 | By Shah Gilani

Two things hit my radar today, and they’re both interesting, for different reasons.

On the surface, you might think they’re not connected, but they might be.

First of all there’s Bank of America Corp. (NYSE: BAC). That poor wee bank was too-big-to-fail even before it bought Countrywide (ground zero for the mortgage crisis) and Merrill Lynch (which was itself TBTF).

And now BoA is in tentative talks with the U.S. Department of Justice (aka the Obama Mafioso Collection Agency) to pay between $16 billion to $17 billion for its part in selling shoddy mortgages, or originating them, or packaging them, or being a TBTF bank that wasn’t allowed to fail but now has to pay the piper.

Today, I’m going to tell you the story behind the story on this. And I’m even going to give you a stock pick…

Here’s Why Walgreens Isn’t Fleeing America

12 | By Wall Street Insights and Indictments Staff

Despite wide expectations that it would, the Walgreen Co. (NYSE: WAG) said Wednesday that it is not moving its headquarters overseas as part of a “tax inversion” deal designed to avoid high U.S. corporate taxes.

Wall Street was not amused, lopping 14.5% off Wallgreens’ share price.

While a tax inversion would have saved it millions in lower taxes, Walgreens made the right decision.

Here’s why.

Don’t Believe a Word the GAO Says

41 | By Shah Gilani

Last week the U.S. Government Accountability Office (GAO) released a report titled “Large Bank Holding Companies: Expectations of Government Support.”

And wouldn’t you know it – all the too-big-to-fail banks broke out their crack pipes.

The highly anticipated report didn’t surprise anybody. After all, we all already know that big banks are government bootlickers… when they need to be.

But that’s not all the report said.

Keep reading, and I’ll reveal the report’s “shocker”…