Ty Andros joined us for another weekly wrap after a brief summer hiatus. Liborgate is the word on everyone’s lips these days. Seems the governments and central banks have been rigging the LIBOR (London Interbank Offered Rate) market for years. Over $700 trillion in loans, securities, and derivatives get priced according to this key rate. Why it’s coming out now is anyone’s guess, but it seems to this untrained observer as if there’s alot more coming down the pike that’s even worse. Not to mention the fact that Spain’s banks haven’t really been bailed out, despite the headlines to the contrary.
Off to California where the governor, who’s been detached from reality for many years, has decided it’s time to condemn through eminent domain, all the non-federal mortgages on the books in the Golden State and sell them off to hedge funds around the world, to bail out the underwater homeowners. While it may sound a bit like a juibilee as mentioned in the Bible, somehow, we don’t recall the hedge funds playing a role. Then all those silver shorts belong to none other than JP Morgan-Chase, according to noted silver analyst Ted Butler. What else is going on that matters any more?
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