by ReverseEngineer » Wed 21 Jan 2009, 04:47:17
Ask not for Whom the Bell Tolls, it tolls for the Big Banks.
We have been watching as banking institutions fail here in cascade fashion, but its taken a good while for the biggest of the big to begin admitting to the depth of their losses. Now banks like State Street and Mellon, who basically handle the money of the Piggiest of Pigmen are finally publishing their losses, which they must if they hope to get Transfusions from TARP to keep pumping the lifeblood of money through their greedy veins.
$this->bbcode_second_pass_quote('', 'C')ustody banks like State Street keep records, track performance and lend securities to institutional investors including mutual funds, pensions and hedge funds. The State Street Global Advisors investment unit manages mutual funds and accounts for institutions and wealthy individuals.
BloombergNouriel Roubini has estimated that actual liabilities for the biggest banks is in the $3T Range on assets amounting to perhaps $1T, the difference of $2T far beyond what has been "appropriated" for TARP or what remains in it, around $350B. Some of the more abstract instruments are turning the balance sheets of these mega banks into swiss cheese at the moment. "Conduits" which are run off balance sheet are one of these assets.
$this->bbcode_second_pass_quote('', 'N')et income fell 71 percent in the quarter from a year earlier, State Street said, as the worst financial markets since the Great Depression reduced the client assets on which State Street charges investment and custody fees. Consolidated tangible common equity, a measure of a company’s ability to absorb financial shocks, fell to 1.05 percent, including off- balance-sheet conduits.
“We believe there will be increased pressure on the company to raise common equity in the near future to maintain its credit ratings,” Gerard Cassidy, an analyst with RBC Capital Markets in Portland, Maine, wrote in a research note today. A common equity ratio below 2 percent is “something investors frown upon,” he said in an interview.
Now, these banks are loath to try to raise capital through equity sales because of course it dilutes the value of shares currently extant in the market. However, the talk is of the need for a "Capital Infusion", and the only way you get money is to sell SOMETHING, and of course all banks have to sell is paper. Even if they did profer new shares on the market, who has money to buy those shares, and who in their right mind would buy the worthless paper of a clearly failing institution?
Besides State Street and Mellon, the Royal Bank of Scotland and Deutche Bank ALSO have published huge losses, and Nationalization is imminent for these historical institutions which have their roots in the very beginning of the banking system which emerged during the Enlightenment in the 1600s. For those of you interested in just how this house fo cards got built up, besides reading up on the Rothschilds I suggest reading up on the House of Medici, along with their ties to the Catholic Church. Most of this stuff actually had its birth in Venice and then Florence, and the mathematicians who jumped into the act thereafter were mostly English and Germans following in the footsteps of the Calculus developed independently by Newton and Leibnitz respectively.
Anyhow, history aside for a moment, about all the Core Banks that have their earliest roots in the beginnings of the banking system are fundamentally insolvent now. These are supra-national institutions that have been managing the wealth of the world concentrated into the ownership of just a few families for around 400 years. For the fans of the Illuminati and their aspirations for World Domination, this is NOT good news. To put it fairly simply, on the books by their own systems of accounting, the Rothschilds are DEAD BROKE. Deeper in the hole than any McMansion owner could ever aspire to be really.
Now, the Brits are Printing Money to try to balance the books of the RBoS, the Germans are Printing Money to try to balance the books of Deutche Bank, and we are printing money to balance the Bank of Mellon. Print all you want, you cannot do anything but bring all accounts to Zero, after that you simply make worthless paper and have hyperinflation. Its not a solution to the bankruptcy of the system as a whole.
It might not be obvious to some of you, but to me I see in the news that these banks have declared their losses and fundamental insolvency the Final Straw here. A few Pigmen here and there are offing themselves, but this is just nothing compared to what happens when banks like the RBoS and Deutch Bank and Mellon go under and get Nationalized. Basically, 400 years of theft of wealth has VANISHED from the books here, the Rothschilds are as broke as everyone else as a result of that. Live by the Accounting sheet, Die by the Accounting sheet, so to speak.
The money of Rene Thierry Magon de la Villehuchet, which had its beginning in the time of the French Revolution all was lost in the Madoof Ponzi scheme, but of course this is just the Tip of the Iceberg here, the whole damn structure is a Ponzi scheme. You can see it now as even the biggest banks harboring the Old Money are ALL on the skids here. The money is all burning up now in the Greatest Bonfire of Paper Wealth in all of Recorded History.
Helicopter Ben and his successor Timothy Geithner can run the priniting presses at the Fed 24/7, Treasury and the Fed can run new Kiting schemes to borrow and lend money to themselves from now till the cows come home but it cannot perform the physically impossible task of creating Something from Nothing. The monetary system is TOAST.
Interestingly, its those at the top of the food chain here who are being hit hardest and hit first as their wealth literally goes up in smoke. As each institution which harbors the "money" fails or is Nationalized, any value these people once had just disappears off the face of the earth. Even though most of them could probably salvage a few million to set up a nice Doomstead, this doesn't even cross their minds because what they are living with here is the total loss of POWER, even more than money. This underlies the reasoning behind the suicides.
I am most interested now in 2 things. Number one is just how long it takes for monetary system collapse to knock down the consumer economy of food. Number two is just how the Goobermint tries to replace the defunct monetary system with a new one, and HTF they will get anyone to trust said system. These two fundamental timeline questions are what in my mind will play out over the next 6 months to 10 years, I just cannot put a finger on how long this takes to run its course. I *think* that we will see significant dislocation by this summer, enough to cause Rioting in some of our major cities, but I am by no means sure of this. Money is a vapor that depends on Belief, and for the most part people still believe in Money. Its not working now though up at the top, the credit market is trashed and international trade is at a virtual standstill, so it just has to work its way down here soon enough. The Pigmen at the top are watching the wealth of generations vanish into thin air, and so they are offing themselves at a phenomenal pace here, but for J6P he still thinks its just a Recession. He still believes in the money showing up in his paycheck if he still has a job. Not for long though, you have to figure if the Pigmen think its bad enough to off themselves, its gonna hit J6P pretty soon here.