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Winter Covers Shorts; Maladjusted US Economy Seems Good Because of European Capital Influx- Free Podcast | RFWS (free) Podcast

Thu, 24 May 2012 03:12:27 GMT

Russ Winter has covered most of his short positions. He tells why, and talks about his strategy going forward. He and Lee Adler ruminate about why the Fed can’t move yet but will if certain clear parameters are reached.

This is a free podcast, available to all. Click here to listen or use the media player below. Click here to learn more about Russ Winter’s Actionable or go to RussWinter.com. To learn more about Lee Adler’s Wall Street Examiner Professional Edition, visit The Wall Street Examiner, or click here.

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Widow sues Wells Fargo over wrongful foreclosure that took devastating toll

Wed, 23 May 2012 17:03:53 GMT

``Oriane Rousseau says husband Norman's suicide was a result of the bank kicking off a process from which they couldn't escape''

An $8bn Loss Or Was JPMorgan 'Unhedged, Long-And-Wrong' Post-LTRO2? - ZeroHedge

Wed, 23 May 2012 17:01:25 GMT

A bit of a nitty gritty analysis but here's the upshot:

... it appears that the CDS data confirms what we suspected: (1) A large (~$120bn) tail-risk tranche credit hedge was placed. (2) The hedging of that hedge became very onerous but surprisingly profitable as markets rallied day after day with no give-back. (3) This led to a greedy trader lifting some of the original tranche and leaving himself much more 'naked long' to the market into LTRO2 - which marked the top. Losses escalated through April (~$2.5bn or so).

EUROPE IS IMPLODING

Wed, 23 May 2012 16:49:04 GMT

``Italy is now off a full 3.6 percent, and the CAC 40 is off 2.6 percent! Meanwhile, the euro has hit its lowest value since August 2010, falling below $1.26 and breaking through earlier resistance that had kept it above that important benchma''

PETER SCHIFF: The Housing Bust Was Just A Preview For The Coming Catastrophe

Wed, 23 May 2012 16:47:59 GMT

``[People] mistakenly assumed that the crash I was warning about [in 2007] was solely a housing led credit bubble. While that was part of it, I never saw it ending there. The crash that most concerned me was the one that would result from the government's response to the initial crisis. My concern was not that our economy would succumb to the disease that I had diagnosed, but instead would be taken down by the "cure" that the government unleashed to combat it.''

Six Billion Dollar Bet - Frontline (MF Global)

Wed, 23 May 2012 16:45:56 GMT

Finally someone has done full coverage. Ironic that this is no longer the latest banking derivatives gamble blowup.

Facebook, Morgan Stanley Sued By Shareholders

Wed, 23 May 2012 16:27:09 GMT

Facebook shareholders just filed a class action suit against Facebook and Morgan Stanley.
...
They are suing over the allegation that analysts at Facebook's IPO underwriters cut their estimates for the company in the middle of the IPO roadshow--and only told institutional investors about this change, not everyone interested in buying Facebook stock.''

Obama and Schneiderman to Double Size of Non-Existent Task Force

Wed, 23 May 2012 16:05:59 GMT

The truth is, there is no task force. Obama is lying. Schneiderman is lying. The Department of Justice simply took various individuals already working on cases involving foreclosure rescue scams and petty mortgage fraud, and designated them a new task force. It's absurd. The reality is that Obama and Schneiderman are both working on behalf of financial elites who will fund their campaigns and pay them a lot of money when they are out of office. That's the game, as I noted this morning in discussing Bill Clinton's $80 million payday from banks (among other entities).

Cities With The Most Homes In Foreclosure

Wed, 23 May 2012 16:03:56 GMT

According to data released last week, the worst effects of the housing crisis are beginning to wind down. RealtyTrac's latest report shows the number of foreclosures in the U.S. in April is down 13% to 188,780 from 219,258 a year ago. However, some of the largest cities in the U.S. continue to lag behind the rest of the country, and still have long to go before the housing crash has fully run its course.

Fleming, Turk: "Money-Printing Has Made Gold 'Cheaper' Than In 2005"

Wed, 23 May 2012 13:32:38 GMT

``Both men think that we are the "in the foothills" of a long precious metals bull market, and that the gold price is in some ways cheaper than it was back when they spoke at GATA's Dawson City conference in 2005, owing to all the quantitative easing -- or more bluntly, money printing -- that central banks have engaged in since the financial crisis of 2008. ''

JPMorgan Employees Sue Jamie Dimon, Ina Drew Over Losses

Wed, 23 May 2012 13:27:02 GMT

``A lawsuit filed on behalf of JPMorgan employees says their retirement accounts fell in value after news broke about the trading loss, Reuters reports. That's because the plan holds JPMorgan shares which have dropped 18% since the loss was announced on May 10.''

World markets tumble on Greece, China anxiety

Wed, 23 May 2012 13:17:53 GMT

``World markets plunged Wednesday on renewed anxiety over Greece ahead of a meeting of European leaders, and signs that the Chinese economy is losing steam.''

Phantom Home Appreciation

Wed, 23 May 2012 13:06:26 GMT

Before you run out and start flipping houses, however, know that the sentiment is not universal. For example, Diana Olick at CNBC (and even Lawrence Yun, or "Sunny Yunny" as L likes to call him) are more guarded about yesterday's news

JPMorgan Joins MF Global In Lobbying Wins That Backfire

Wed, 23 May 2012 12:59:29 GMT

MF Global Holdings Ltd. argued in a December 2010 letter to regulators that futures brokers didn't need tighter restrictions on how they invest client funds. Ten months later, as MF Global filed for bankruptcy, about $1.6 billion in customer accounts was missing.

Thankfully, FHFA & Banks Killed Homeowner Bill of Rights

Wed, 23 May 2012 12:57:59 GMT

The Big Banks and the FHFA's Ed DeMarco brought their considerable political muscle to the job of killing the Homeowner Bill of Rights in California, and although technically there's still some voting to do... trust me... that's all she wrote.

Federal Judge Agrees, Fannie Mae Foreclosure Could Violate U.S. Constitution

Wed, 23 May 2012 12:56:17 GMT

On May 7, 2012, Judge Robert J. Jonker of the United States District Court, Western District of Michigan dismissed Fannie Mae's Motion for Summary Judgment in the case of Pablo Bocardo and Guadalupe Bocardo v. Select Portfolio Services and The Federal National Mortgage Association. (Docket # 1:12-cv-177) and is allowing this to go to trial.

Foreclosure amnesia -- California distressed inventory still larger than non-distressed properties.

Wed, 23 May 2012 12:38:37 GMT

People suffer from a sort of amnesia when it comes to the economy. For example, the low mortgage rates are now used as the major reason to buy in spite of weak employment reports, major budget deficits, and lower incomes for younger Americans. In other words, the major reason to buy today is the low interest rate. But even 10 years ago, the 30 year fixed rate mortgage was at 7 percent or nearly twice as high as the current rate. The entire housing market is being held up by a string and that string is the artificially low rates. Yet what is not being reported is more important

Morgan Stanley Subpoenaed In Facebook Case Over Charges It Kept Info From Some Clients

Wed, 23 May 2012 12:36:08 GMT

Massachusetts' top securities regulator has subpoenaed Morgan Stanley related to allegations that it gave some clients negative information about Facebook before last week's initial public offering.

Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds

Wed, 23 May 2012 02:23:32 GMT

States have diverted $974 million from this year's landmark mortgage settlement to pay down budget deficits or fund programs unrelated to the foreclosure crisis, according to a ProPublica analysis. That's nearly forty percent of the $2.5 billion in penalties paid to the states under the agreement.

Hedge Funder Who Bet $100 Million On The Facebook IPO Just Called And Boy Was He Furious

Wed, 23 May 2012 01:32:38 GMT

``His allegations/claims/opinions: NASDAQ knew its systems were broken before the Facebook IPO, and instead of aborting the offering and facing huge embarrassment, it went ahead. Traders then lost hundreds of millions of dollars as they tried to buy and sell Facebook stock without getting confirmation that their trades had been executed....''