A day like today brings images of the O.K. Corral. Is it possible once the smoke clears there will only be two prime brokers left standing on Wall Street and not by accident?
One story you will not see in the major media is how and why J.P. Morgan and Goldman Sachs might be the only ones left standing. That’s assuming JPM and MS merge back together. It was the Glass-Steagall Act which broke them up, but thanks to incumbent agenda and Phil Gramm that’s no longer an issue since it was repealed in 1999.
Morgan Stanley’s CEO is John J. Mack. Due to his White House connections he is now in position to lead Morgan Stanley through a period of financial turbulence which was planned for and anticipated by a select group of insiders.
GTM posted in June Gary Aguirre’s whistleblower testimony about Mack (from Wikipedia and MarketWatch):
Aguirre said that he was fired from the SEC on September 1, 2005 because he was aggressively pursuing the investigation and wanted to interview Mack about the findings. According to Aguirre, his efforts to talk to the politically well-connected Mack were blocked by senior SEC officials. This allowed Mack enough time to secure his position as CEO of Morgan Stanley. Had he been investigated in mid 2005 by the SEC, Mack would not have been a viable CEO candidate for Morgan Stanley.
This is stuff that gets people shot, like the O.K. Corral. Our theory is a market crash has been orchestrated or organically allowed to happen. Read our story on the OTC market and you can clearly see how safeguards were prevented by the New York Fed. Like a good ‘ole Western shootout the hedge funds are the ranchers and the large banks are the money men. Some will be sacrificed, but the key families/banks will remain in play. You get the ranchers to kill each other off then snap up their property. Compare the stocks of JPM/MS and GS to the other financial players.
Read our three most popular articles and you will be able to see who is pulling the strings and why they knew this would happen. When you dig into the history of the main players you will find a common thread of prime relationships: social, financial, and political.
For instance, Hank Paulson was Chairman/CEO of Goldman Sachs and on the board of governors of the International Monetary Fund which is closely tied to the Rockefellers who have the Rockefeller Center at Dartmouth where Paulson went to school. They also owned Chase Manhattan Bank which merged with JPM after Phil Gramm paved the way. They sit on the Senate Finance Committee and have guys like Timothy F. Geithner of the New York Fed in their personal think tank called the Council on Foreign Relations.
Guess what corporations sit on that board? That’s right, Goldman Sachs and JPMorgan Chase.
If you’re interested in solar power and free energy you’d be pleased to know General Electric and Big Oil are there too. See our story on who is gaming the solar market.
Like the late great George Carlin said, “It’s a Big Club, and you ain’t in it.”
The point is nothing happens by accident, so be mindful of what you are officially sold as the truth.
The following snippets are from GTM’s three most in-depth articles. Please read the stories and connect the dots for yourself.
Front Running A Systemic Market Crash: PPT Style (posted in July)
“$8.3 trillion of real money is controlling $313 trillion in derivatives!”
This illustrates the sheer magnitude of the problem and the economy-busting potential of a miscalculation. That’s why Warren Buffett calls derivatives “financial weapons of mass destruction.” If there’s a fire-sale in hedge funds or derivatives, there’s nothing the Plunge Protection Team or the Federal Reserve will be able to do to stop a meltdown.
How Manipulators Game the Market (posted in June)
There are roughly 400 key hedge funds linked to illegal activity. In total 11,500 hedge funds have $1.2 trillion under management. Overall, it’s not a big chunk of change. However, that money has a very high cycle rate. Hedge funds execute up to 50% of the daily trading on the $21 trillion New York Stock Exchange. They also do 70% of the trading in the US distressed debt market, US exchange-traded fund market, and the convertible bond market.
Using Crisis To Monopolize Fed Control (posted in July)
Prime brokerage is a service offered by banks and broker-dealers to buy-side investors (typically hedge funds), and is built around financing funds’ positions and facilitating clearing and settlement of their trades. Traditionally, prime brokerage involved financing and securities lending services used by market participants taking long or short equity positions. Over time, the services extended to fixed income and foreign exchange markets. Most recently, a form of prime brokerage known as OTC derivatives prime brokerage has been developed and marketed almost exclusively to hedge funds.
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