Here is the bottom line. The math doesn't add up the fundamentals do not allow for the large gains of the past week, and neither does the Lame-Stream news stories. So what's going on?
In the simplest terms...
Central Bankers: "Is everyone's chips all on the table?....... then they are ours now." (followed by) "Are you sure that you are 'All in' this time, do we have the rest of your cash invested in this sucker's rally?... now that's ours".
Don't get suckered by the bullshit. China is even warning of the effects of the obamageddon. Details of the economic agenda were contained in a pre-meeting booklet being handed out to Bilderberg members. On a more specific note, Estulin warns that Bilderberg are fostering a false picture of economic recovery, suckering investors into ploughing their money back into the stock market again only to later unleash another massive downturn which will create “massive losses and searing financial pain in the months ahead,” according to a Canada Free Press report.
The future of the US dollar and US economy: The plan is for the Bilderberg Group players, through their allies in Washington and Wall Street to continue to deceive millions of savers and investors who believe the hype about the supposed up-turn in the economy. They are about to be set up for massive losses and searing financial pain in the months ahead. The bank “stress tests” now being conducted by Washington are little more than a shameless hoax: Based on the irrational assumption that the economy won’t get as bad as it already is!
US unemployment: Solutions and assumptions (Stated as such in the pre-meeting booklet sent out to attendees.) Bilderberg is quietly assuming that US unemployment numbers will hover around 14% by the end of this year, far higher than the official numbers released by the US government.
Depression or a prolonged stagnation? (Stated as such in the pre-meeting booklet sent out to attendees.) Bilderberg is looking at two options: Either a prolonged, agonizing depression that dooms the world to decades of stagnation, decline, and poverty ... or an intense-but-shorter depression that paves the way for a new sustainable economic world order, with less sovereignty but more efficiency.
There will be a final push for the enactment of Lisbon Treaty, pending on Irish voting YES on the treaty in Sept or October. One of their concerns is addressing and neutralizing the anti-Lisbon treaty movement called “Libertas” led by Declan Ganley. One of the Bilderberger planned moves is to use a whispering campaign in the US media suggested that Ganley is being funded by arms dealers in the US linked to the US military.
“The crisis revealed serious deficiencies on the part of some financial institutions” in risk-taking, capital adequacy and liquidity planning, Bernanke said today in a Chicago speech. “The crisis has likewise underscored the need for heightened vigilance and forcefulness on the part of supervisors.”
The stress tests have been “comprehensive, rigorous, forward-looking, and highly collaborative among the supervisory agencies,” Bernanke said in a speech transmitted by satellite to the Chicago Fed’s annual conference on bank structure and competition. The tests may help improve supervision in the future, he added, while not commenting on the results.
If Ben Bernanke was serious about The Fed's regulatory role this mess could be cleaned up immediately.
Here's the rule for safety and soundness of any fractional reserve lending system:
No bank may have outstanding at any time unsecured loan balances exceeding their excess capital.
All credit card loans are unsecured, of course. The balance of a HELOC that exceeds the market value of the property less any loans with priority over it (and the costs of foreclosure and resale) is unsecured. Any mortgage that exceeds the market value less rehabilitation and resale costs is unsecured.
Banks can make all the unsecured loans they want, so long as every dollar of them is covered by one dollar of excess capital.
That is, capital beyond regulatory minimums.
Secured lending, that is, a loan for which the current recoverable market value of the collateral (including all costs of foreclosure and resale) exceeds the loan balance is a fully secured note and is safe irrespective of the loan performance, as seizure and resale of the collateral will always result in no loss for the bank.
Enforcing this regulation of course requires that all assets be marked to their market every day. This sounds impossible, but it is not. You can mark at a frequency and excess cushion on asset valuation to preclude going into negative territory. Let the bank choose the frequency, but make clear that the penalty of going negative on unsecured loans .vs. excess capital is immediate seizure and shutdown of the institution. Period.
The above is the definition of "safe and sound" for any fractional reserve lending system. All the rest of this noise out of people like Bernanke, the OTS, OCC, the industry itself and Congress is just that - it is noise and a willful, knowing lie.
We are here in this mess because regulators refused to enforce this simple, one-sentence fundamental statement of safety and soundness in our banks.
As a direct consequence of this refusal we blew a huge asset bubble.
This was particularly inexcusable because we did it right on the back of a previous asset bubble that burst for the exact same reason.
No bank should ever be able to come to the taxpayer for a bailout,and if we enforce the single basic rule of fractional reserve safety and soundness none ever will need to be bailed out, because it will be closed and liquidated before it can pose systemic risk.
We the people must insist that Congress force these clowns to do their jobs. They know the mathematical facts behind this, and that is in fact the only safe and sound way to run a banking system.
They're refusing because they also know that the banks have not conformed to this, do not conform now, and have and will bribe Congress and others to prevent this standard from being imposed on them, instead sucking off the taxpayer teat.