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We Are On The Eve Of Another Possible Stock Market Crash, The Largest Ever One Session DJIA Point Loss Is Imminent!

Over the last week and a half, high level JP Morgan executives have dumped over $6 million in shares in what experts have described as ‘unusual activity’.
Anyone believe JPM’s October 12th earnings report which beat expectations?  Looks like accounting BS engineered to dump legacy positions on the general public.

A chorus of high-level executives inside JPMorgan (JPM) are selling down their stakes in the company, in what some experts are citing as “unusual” activity within the nation’s largest bank by deposits.

CNBC reports that JPM execs have dumped $6 million in the past 10 days!:

In sum, executives on JP Morgan’s operating committee have reaped proceeds greater than $6 million since October 15th — a move that appears uncharacteristic for the bank, according to Ben Silverman, director of research at InsiderScore.com, which tracks insider buying and selling activity.

“This is an unusual cluster of sales in that we typically don’t see this many insiders at the company [JPMorgan] selling at the same time,” Silverman said. “We look at events like this as a negative event for the stock.”

Every exec but Blythe and Jamie are dumping the stock:

On Oct. 19, Mary Erdoes, CEO of JP Morgan Asset Management, sold 40,000 shares at $42.46 each, for roughly $1.7 million in proceeds.

On Oct. 17, John Donnelly, director of human resources, sold 40% of his JPM stock in his first insider transaction: Cashing in $1.1 million in shares at $43.29 apiece.

Two days earlier, executives across investment, consumer and mortgage banking made big sales. On Oct. 15 – the first business day post-earnings – Michael Cavanagh, the newly installed co-CEO of the investment bank, sold 40,000 at $42.00, cashing in roughly $1.7 million. Gordon Smith, Chase co-CEO of Consumer & Community Banking, cashed in 28,300 shares in a sale totaling $1.2 million. Frank Bisignano, the bank’s co-COO and head of JPM’s Mortgage Banking unit, sold $844,900 worth of stock at $42.25.

Perhaps Bill Murphy was merely a little early on his timing and JP Morgan is in fact facing major imminent losses?


The Eurozone Money Supply Is Contracting Again

All key measures of the eurozone money supply contracted in September and private credit fell at an accelerating pace, dashing hopes of a quick recovery from recession.  

 Data from the European Central Bank show that the tentative rebound in the money supply over the summer may have stalled again in September.

The broad M3 gauge — watched by experts as an early warning signal for the economy a year or so ahead — shrank by €30bn and is now down by €143bn since April. This is highly unusual.

The narrow M1 gauge watched for signals of activity six months head has held up better but also contracted in September, falling by €16bn.

“The message is clear,” said Lars Christensen from Danske Bank. “The ECB needs to stop obsessing about fiscal issues and do real quantitative easing (QE) if it wants to stop the eurozone going the way of Japan.”

** Cash-strapped Europe nations are not shy about taxing rich


Greek Deadline – Sunday Evening

According to the Greek press, the Troika now demands that Greece resolve its objections to labor reforms (which as reported earlier have forced the ruling coalition to split) by Sunday night, or else…

The implication, it appears, is that absent a compromise, the next Troika tranche of €31.5 billion is not coming, and Greece is out. And while the market is sanguine about this outcome, we are once again at the bargaining table, where nobody knows just who has the upper hand in Mutually Assured and quite Destructive bailout negotiations: Greece or Germany. From Kathimerini: “The government is facing a Sunday deadline for a full agreement on the package of measures that will see it cash in the next bailout tranche of 31.5 billion euros. The three-day extension it got in order to get maximum backing within the three-party coalition will be necessary as minor partner Democratic Left insists on an improvement in the terms concerning labor reforms that it staunchly opposes.” Will Greece come through in the clutch? And if not, just what happens with the EURUSD on Sunday night as Greece calls the Troika’s bluff? Deja vu shades of early summer, and plunging European risk come to mind…

Germany’s Finance Minister: “Nothing decided” on Greece’s euro membership.


Student Loan Defaults on the Rise as Debt Crisis Worsens

Until now. With annual tuition rates alone well into five figures even for traditionally bargain-basement institutions like land-grant universities, potential students and their hard-pressed parents are very likely to start looking for alternatives to baccalaureate degrees. Although college enrollments remain steady so far, so did housing purchases — right up to the eve of the crash.

Student loan debt is different from credit card debt and mortgage debt in one very significant way: It cannot be discharged via bankruptcy. Student debt, under current law, is with the borrower, interest accrual and all, for as long as it takes to pay it off, unless extreme circumstances like total disability supervene. Creditors almost never forgive student debt, because they know that, backed by the federal government, they can continue to pile on interest and pursue delinquent borrowers literally for their entire lives.

In better times, few student borrowers were even aware of such obligations. But with defaults on the rise, aggressive and less-than-fully-truthful tactics employed by lenders to entice students to borrow money on what seem like attractive terms are now getting wide publicity — as are banks’ increasingly aggressive efforts to track down and shake down borrowers in default.


Japan Is In Danger of Imminent Technical Default, could technically happen as early as December

Japan has no problem with demand for its bonds – the Bank of Japan is buying plenty and there’s tons of demand via domestic savings – but it may be approaching a supply shock if Japanese politicians can’t figure out how to get deficit legislation passed.

That’s the gist of a warning today from BofA Merrill Lynch strategist Brooks Thompson, who sent a note to clients this morning with the title: Did You Know Japan’s Fiscal Cliff is Right Around the Corner?

Here are Thompson’s thoughts on the conflict:

The current political stalemate has delayed legislation to finance the budget and Japan’s coffers are expected to run-out by end of November, which would lead to technical default. I don’t want to overly exaggerate, but I’d say this is a much more current and (somewhat) serious reality than the BOJ buying foreign bonds.

There are a lot of interests or inquiries regarding foreign bond buying by the BOJ, but I have not heard one inquiry about Japan being on the brink of default. We’re not talking about 3yrs, 5yrs or 10yrs from now, this could technically happen as early as December. Of course no one believes that Japanese politicians would actually allow the country to default, but just as the fiscal cliff in the U.S. is a reality, the political stalemate in Japan makes this unthinkable possibility a bit of a reality.


90% Of Corporate Forecasts See Results Below Wall Street Consensus And A Massive Estimates Cut Across The Board Imminent!!

As of Tuesday midday, among S&P 500 companies, 35 out of 39 firms, or 90%, that gave forecasts have provided an earnings outlook that guides below the Wall Street consensus, according to John Butters, senior earnings analyst at FactSet. That’s even worse than the 78% negative forecast rate going into third-quarter earnings season, which was the lowest recorded by FactSet since it began tracking the data in 2006.

Similarly, among S&P 500 companies, 25 out of 28, or 89%, have said fourth-quarter revenue will come in below consensus.

Downward Earnings Revisions Are A Game-Change For The Stock Market

In the face of a world-wide slowdown, the European sovereign debt crisis, dysfunction in Washington and the fiscal cliff, two major props have been behind the upward move of the market—-the vigorous gains in corporate earnings and the Fed’s determination to keep monetary policy ultra-easy into mid-2015.  Now one of these bulwarks—-earnings—– are in the process of reversing to the downside, leaving only the Fed to stem the tide against the force of household debt deleveraging.

For those companies reporting 3rd quarter results, earnings were down an average of 3.9% and revenues up only 0.4%.  Moreover, results for the 4th quarter may be even worse.  Of 39 S&P 500 companies providing 4th quarter guidance, 35 indicated results below the current consensus while 25 of 28 forecast that revenues, too, would fall short of the consensus.

Companies cutting 4th quarter estimates included Caterpillar3MDuPontTexas InstrumentsUnited Technologies, Advance Micro Devices, MicrosoftIBM and Intel.  Consensus estimates for the 4th quarter now look for a year-over-year earnings increase of 8.3% and a revenue increase of 2.7%.  With the current round of downward revisions, and probably even more ahead, these estimates are sure to come down.  In addition the global slowdown makes it highly likely that 2013 earnings estimates are too high as well, indicating that P/E ratios are significantly higher than the “Street” believes.


G.Soros Unloads All Investments in Major Financial Stocks; Invests Over $130 Million In Gold. Preparing For Something BIG?


In a harbinger of what may be coming our way in the Fall of 2012, billionaire financier George Soros has sold all of his equity positions in major financial stocks according to a 13-F report filed with the SEC for the quarter ending June 30, 2012.

Soros, who manages funds through various accounts in the US and the Cayman Islands, has reportedly unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million.

What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiring some 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.

When a major global player with direct ties to the White House, Wall Street, and the banking system starts off-loadingstocks and starts stacking gold, it suggests a very serious market move is set to happen.

While often lambasted for his calls to centralize global banking, increase government intervention in the economy and his support of what he has called an “emergence of the new world order,” if there’s anyone with an inside track of where things are headed next it’s Soros.


Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG

If you want to figure out what is going to happen next in the financial markets, carefully watch what the insiders are doing. Those that are “connected” have access to far better sources of information than the rest of us have, and if they hear that something big is coming up they will often make very significant moves with their money in anticipation of what is about to happen.

Right now, Wall Street insiders and central banks all around the globe are making some very unusual moves.

In fact, they appear to be rapidly preparing for something really big. So exactly what are they up to? In a previous article entitled “Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?“, I speculated that they may be preparing for a financial meltdown of some sort. As I noted in that article, more than 600 banking executives have resigned from their positions over the past 12 months, and I have been personally told that a substantial number of Wall Street bankers have been shopping for “prepper properties” this summer.

But now even more evidence has emerged that quiet preparations are being made for an imminent financial collapse. That doesn’t guarantee that something will happen or won’t happen. Like any good detective, we are gathering clues and trying to figure out what the evidence is telling us.


Perhaps, The Collapse Is Already In Process: Thousands have their cash frozen after collapse of Banksia Financial Group

Another Lehman moment? A start to Australia Bank runs? Auditors gave Banksia Securities a clean bill of health less than four weeks before its collapse!!

Just image how many American Financial companies are insolvent at the moment and are being given “clean bills of heath.”

Auditors gave Banksia Securities a clean bill of health less than four weeks before its collapse last night, its latest accounts show.

The non-bank lender’s fall into receivers’ hands has left thousands of investors in limbo over the fate of about $660 million in investments.

On September 27, accountants signed off on accounts that found “no significant changes in the state of affairs” during the year.

Further, “no matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company,” the report said. The sign-off on the company’s 2012 full-year accounts by the chartered accountants Richmond Sinnott & Delahunty in Bendigo came less than a month before receivers McGrathNicol were called in.

AUSSIE FINANCIAL DOOM: Banksia Financial Group GONE!!

Thousands of hard working Aussies are in serious financial doom after the collapse of Banksia Financial Group..

RETIREES, schools and sporting clubs are in shock and fearful about the fate of their investments following the collapse of Banksia Securities.
Thousands of people hundreds of millions of dollars in losses after the shock collapse of Banksia Financial Group. Receivers McGrathNicol took charge of the non-bank financial firm, based in Kyabram in central Victoria, and froze investments on Thursday after the Banksia board found the company faced insolvency.

Iconic NY Steakhouse ‘Gallagher’s,’ Which Survived Great Depression, Is Closing Due To Economic Reason

The Department of Labor’s WARN (Worker Adjustment and Retraining Notification) website may have been exempt from layoff notices related to the fiscal cliff, but it still provides a sufficiently (bleak) complete picture about the real nature of layoffs and business cycle in general in America’s busiest city. Which is why it was precisely using the WARN website that we learned that one of New York’s most historic steakhouses, “NY’s Prime Steakhouse since 1927″ Gallagher’s, located on 52nd street, and which survive the great depression, is shutting down on January 16. Surely neither the surging price of meat, nor the ability of patrons to spend charge $46.95 for an 18 ounce sirloin, has had any impact on the decision to close this iconic restuarant which survived the Great Depression, but failed to survive Tim Geithner’s “recovery“.

SOURCE here.



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