Articles About Wall Street

How We’re Going to Get Rich in 2015

19 | By Shah Gilani

Last week, while wishing my newsletter subscribers at Capital Wave Forecast and Short-Side Fortunes a happy New Year, I warned them that 2015 isn’t going to be a happy-go-lucky year.

The one prediction I emphasized over and over was that volatility would be extreme.

We’re already seeing that today with the Dow Jones Industrial Average down more than 300 points and oil (based on West Texas Intermediate pricing) dipping below $50 for the first time since April 2009.

There are many reasons why volatility will be our constant companion in 2015. And there will be many opportunities to very profitably trade volatility – both on the way down and on the way up.

So today, I’m going to start showing you how to profit from volatility across all the asset classes that are going to make or break investors in 2015.

Let’s get started ensuring you folks are among the investors who make it…

This D.C. “Watchdog” Finally Bares Its Teeth

3 | By Shah Gilani

It’s 2015, and things are changing, especially on Wall Street. I just know it.

For example, the U.S. Securities and Exchange Commission (SEC) finally figured out that high-frequency traders (HFT) have an advantage over most other investors and traders

And that means the SEC is going to come out with new rules to level the trading field for all investors within a few weeks – or, more likely, months.

This puts the SEC right where it should be.

Today I’ll tell you why that’s the case – and what it could mean for investors like you…

How Wall Street Wins Its No-Lose Trades

8 | By Shah Gilani

The madness of the manipulation machinery on Wall Street knows no bounds.

Remember credit default swaps (CDS)? They’re the risky financial derivatives traded among Federal Deposit Insurance Corp. (FDIC)-insured banks that, during the 2007-’08 financial crisis, took down Lehman Bros. and almost bankrupted giant insurer AIG Inc. (NYSE: AIG).

Well, they never went away. And now they’re making a comeback, and Wall Street is using them in ever more maniacal ways.

They’re back partly because the recently passed federal spending bill reversed a Dodd-Frank rule that said big gambling banks had to separate CDS into units not guaranteed by the FDIC (aka taxpayers).

While I may come back to that, I’m not writing about Congress‘ latest gift to Wall Street today.

Today, I’m going to show you how Wall Street manipulators are using CDS and a false front of “activism” to make huge profits from troubled companies – and why that’s becoming routine.

What’s Really Going on Inside the Latest GDP Number

14 | By Shah Gilani

Sit down before you read this.

It’s going to make your head spin and, worse, change the way you think about what’s real in America.

Christmas came early this year, for the market that is, by way of a gift from the U.S. Bureau of Economic Analysis.

However, this branch of the U.S. Department of Commerce, didn’t put its gift under anybody’s tree. They put it over all of us.

The gift was headline news that the “third revision” of third-quarter gross domestic product (GDP) showed the U.S. economy grew at a whopping 5% annualized rate, not the 3.9% rate posted in the “second revision.”

That sounds like good news, right?

Well, here’s what’s scary…

How Goldman and D.C. Hosed AIG – and the Taxpayers

11 | By Shah Gilani

The truth about crony capitalism, at the highest level, is being laid bare right before our eyes.

I’m talking here about Goldman Sachs Group Inc. (NYSE: GS) as the husband of global investment banking prowess with the U.S. government as its mistress puppet.

Maybe there is hope that the Goldman Government can be brought down.

Okay, I was pushing it there. That’s not going to happen in this century.

But here’s what is happening…

Wall Street’s Big Boys Bulldoze Through the Spending Bill They Want

6 | By Shah Gilani

We’ve got a spending bill, folks!

The government of the United States will remain open for business thanks to the usual suspects in Congress being open to being bought.

Sometimes it only takes a few phone calls from a deep-pocketed giant bank CEO to remind legislators who butters their bread.

According to Sunday’s Financial Times, bread-butterer par excellence Jamie Dimon, chairman and CEO of mega-fat JPMorgan Chase & Co. (NYSE: JPM), worked the phones hard last week. He called on his legion of congressional peeps and perps to pass the $1.1 trillion spending bill as written.

Why did this patriot risk getting calluses on his fingertips for some pipsqueak legislation?

Read on and I’ll tell you what I think – and I’ll show you what it means for all of us going forward…

How Wall Street “Jihadists” Are Engineering a Government Shutdown

18 | By Shah Gilani

WASHINGTON, D.C. – A tense battle between warring political parties erupted in Washington yesterday when Wall Street-backed Jihadist demands surfaced in the 1,600-page omnibus spending bill – threatening to first take the U.S. House of Representatives hostage, then all of America.

Intelligence services (obviously not Washington-based) initially identified the financial terrorists as Beltway lobbyists, but later revealed them to be a Big-Bank sleeper cell embedded in God-hating Dodd-Frank legislation, universally decried by the faithful as blasphemous.

In what was meant to be a stealth operation, the plastique-laden provision inserted into the bill aiming to roll-back certain Dodd-Frank rules, instead exploded prematurely.

And it shows us how financial terrorism continues to escalate…

Inside the Washington-Wall Street Corruption Industry

9 | By Shah Gilani

There’s a new twist in an ongoing U.S. Securities and Exchange Commission (SEC) probe.

For months now, the SEC has been investigating whether anyone in the federal government leaked inside information to a Washington-based investment research firm.

While that was pretty juicy already, those investigators are now looking at up to 44 hedge funds that may have traded on that inside information.

If you already thought our public servants were greedy, dirty and corrupt, well, this helps prove your case.

If, on the other hand, you think our folks in D.C. are pure, altruistic angels, today I’m going to convince you otherwise…

There’s a Cost to All This Good News

9 | By Shah Gilani

Too-big-too-fail banks are paying record amounts to settle mortgage-related malfeasance dating back to the financial crisis, and everyone seems to think that’s good news.

It is… and it isn’t.

Not including legal costs and other lawsuits, Bank of America Corp. just settled for $16.65 billion, which beats the previous record $13 billion JPMorgan Chase & Co. paid.

The total and final tab for both banks’ forays into the mortgage securitization sinkhole will never be known. But based on what they’ve paid out so far, their combined costs will easily exceed $100 billion.

Think about that number: $100 billion.

Don’t get me wrong. I’m happy the banks are paying up. And I’ll be sad when they’re done paying, because the damage they caused will linger for decades.

But I’m worried about the cost…

Justice? Not When There’s This Much Money

11 | By Shah Gilani

Here’s something to tick you off today, something that you may not have figured out.

Lloyds Banking Group PLC (NYSE: LYG), the United Kingdom’s biggest mortgage lender, had to pay another fine yesterday.

(Yes, Lloyds is that too-big-to-fail bank I used to work for… but that was back in the 1980s, so don’t blame me.)

That Lloyds technically failed and had to be bailed out during the financial crisis and is still about 25% owned by UK taxpayers is beside the point.

Ask Lloyds traders how they feel about being saved to die another day. If they’re honest, and a bunch of them aren’t, they might tell you they’re glad to have the chance to continue screwing whomever they can in order to pad their bonuses.

Today, I’ll tell you all about how banking is an entitlement regime. In fact, it’s kind of like its own monarchy.

Here’s the travesty…