Archive for March, 2015

Don’t Celebrate the Housing “Recovery” Yet

5 | By Shah Gilani

When I moved to Sarasota, Fla., in 1999, I was invited by a prominent local to an “un-wedding wedding” to make new friends in town. I accepted the invitation and, not wanting to display my ignorance, avoided asking the burning question: “What’s an un-wedding wedding?”

Inevitably, I found out what an un-wedding wedding is. It’s a full-blown wedding, only the host isn’t actually getting married. He or she wants to get married but isn’t – and goes through the motions anyway.

This manipulation of celebratory events to fabricate optimism about a desired future reminds me of the state of housing in the United States today.

Here’s why…

Apple Is a “Buy” on Every Dip

0 | By Wall Street Insights and Indictments Staff

We’re in the middle of a tech sell-off, so Shah says now is the time to scoop up discounted shares of Apple Inc. (Nasdaq: AAPL) while you can – the company’s shares are now 9% off their 52-week highs. “The company is just extraordinary in every respect.” Shah told Stuart Varney during his latest appearance on Fox Business.

Shah weights in on how the Apple Watch and the company’s performance in China are going to affect the tech powerhouse’s near-future growth, earnings and share price.

Click here to watch the video.

Why You Must Beware of Quicksilver Markets

4 | By Shah Gilani

“Quicksilver Markets” is the provocative title of an Office of Financial Research (OFR) report published March 17.

The report’s author, Ted Berg, in his conclusion warns that “Quicksilver markets can turn from tranquil to turbulent in short order.”

He believes the stock market could crash – again.

Of course, no one paid much attention to the report, least of all the markets last week.

But we should.

Here’s why…

Janet Yellen Needs a Lesson in Culture

6 | By Shah Gilani

The interesting news coming out of Federal Reserve Chairwoman Janet Yellen’s Q&A yesterday was her response to a question about bad bank “culture.”

Apparently, it’s not the Fed’s concern.

Yellen said, “While changing the culture of organizations is not something that we can achieve through supervision, we will make sure that the banks that we supervise have appropriate compliance regimes in place.”

So far, the Fed’s “appropriate compliance regimes” let big banks get away with manipulating Libor, foreign exchange markets, metals markets and energy prices.

And that’s just a few of the big cheating regimes banks have lorded over.

Today I’ll reveal a few more of those cheats – and I’ll show you how the Fed, if it wanted to, could change bank culture with a single stroke of a pen…

When the Worst Loans Are the Best Deals

4 | By Shah Gilani

Last Wednesday, only 2 out of 31 big banks failed the Federal Reserve‘s “qualitative” round of stress tests.

One was Deutsche Bank USA, and the other was Santander Holdings USA Inc.

And then on Thursday, Santander’s biggest U.S. unit, Santander Consumer USA, was able to sell a bundle of subprime auto loans, worth $712 million, in a matter of hours.

Today I’m going to show you why this bond deal matters – and how it proves that the worst history always repeats itself…

At Citigroup, It’s the Same as It Ever Was

6 | By Shah Gilani

Flashback to the 2008 credit crisis.

There’s Citigroup Inc. (NYSE: C) – bent-over by arrogance, off-balance sheet liabilities and derivative weapons of mass destruction in an insolvent fetal position.

Back in those dark days, Citi’s “Help! I’ve fallen, and I can’t get up!” cries were heard loudly across the interconnected, too closely correlated banking landscape.

Federal Reserve defibrillators were immediately attached to the heart of the too-big-to-fail bank, via its capital and liquidity arteries, and its survival was miraculously guaranteed.

Fast-forward to the gold statue just awarded to Citigroup for passing the Federal Reserve’s 2015 bank stress tests.

As Citi grabbed the Oscar from winking Fed presenters, the capital markets and America cheered, “You’ve come a long way baby!”…

Bank Stress Test Kabuki Theater Begins Again

3 | By Shah Gilani

It’s that time of year again. Not for spring cleaning – but for bank stress tests.

Too bad stress tests are nothing more than a sweeping-dirt-under-the-rug exercise, despite the rug-beater supposedly hanging them on the line.

The whole show, which first started in April 2009, is just a public performance.

After all, is any bank ever going to fail and be expelled from the club?

Never.

The stress tests, in fact, are nothing more than Dances With Wolves…

How the 1% Controls Our Central Bank “Comrades”

23 | By Shah Gilani

Central bankers aren’t stalwart free-market shepherds, though that’s how they cloak themselves.

The truth is they’re a lot more than just communist wolves in sheeps’ clothing.

They’re emperors of a new global regime that goes by the name “The Owners Club.”

Today I’m going to show you what their game really is.

I’m going to show you how they play it, who benefits and who will end up suffering so much that they’ll spark a global revolution…