from:

Jim Willie CB

http://www.321gold.com/editorials/willie/willie112008.html


Where is new money going? It is pumping up bank stocks, replacing dead bonds on bank balance sheets with USTreasurys, along with backstopping Fannie Mae and AIG hemorrhages under official aegis. It is replenishing JPMorgan in pre-dawn agreements before bankruptcy judges to the tune of $138 billion under highly suspicious circumcisions. JPMorgan must carve out its layers so it can continue funding the gold suppression and USTreasury propping, if not their own massive unreported credit derivative losses. They enjoy a pass on proper accounting, due to national security nonsense. Their credit derivative monster book grew during the late 1990 decade, when the sham Strong Dollar Policy was in vogue under Robert Rubin direction. Everything the guy touches turns to ruin, but he will pick the next Treasury Secretary.

Gee guys! Not only was the giant diversion of funds to help bank stocks executed at doubled the share prices, well documented by other analysts, but the initiative has failed to help the bank stock index. See below. The BKX index is scratching out new lows, perhaps a reflection of the further abuse of TARP funds. Look for a target on the BKX of 30 or lower. Bank executives have paid themselves bonuses, after they drove their businesses into the graveyard with horrible bond investments and sidetracked private equity deals. My personal conjecture is that a huge amount of that infamous TARP money has been quietly transferred over to the Plunge Protection Team, for stock market index intervention and management. Too many denials and ridicule have come to the contrary. Where denials abound, lies are told, confirmed later.

from a Yahoo post:

GM has hit lows last seen pre WW2 (1938), says Yahoo!and the S&P has breached the lows of 2002/3 to go back to 1995/96.

S&P 500 11/12 year low of 768.63 on 10 October 2002

Markets going back in time...

http://www.atimes.com/atimes/Global_Economy/JK21Dj05.html