The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label bankruptcy. Show all posts
Showing posts with label bankruptcy. Show all posts

Saturday, April 1, 2017

Pension bomb climbs to nearly $2 trillion in a decade as Fed and zero interest rates kill Americans chance of retirement

With the Federal Reserve picking winners in their monetary policies since the 2008 financial crisis, the real losers have been the 10's of million of retirees, and the hundreds of millions of Americans who have lost purchasing power thanks to stagnant wages and rising inflation.  And it is directly on the heads of the central bank that the wealth disparity between the 1% and everyone else has taken place.

And because of the massive expansion of credit and debt, and the keeping of interest rates below 1% for over a decade, the nuclear bomb that is America's underfunded retirement scheme is now on the precipice of not only exploding, but also taking down local and state governments with it.

Just how big is the underfunded pension bomb you might ask?  Numbers as of the end of March 2017 now show that the total is just under $2 trillion, and has gone up nearly 10 times since 2007 and just before the financial crash.

Image result for pension bomb
Are millions of Americans about to see the big, juicy pensions that they were counting on to fund their golden years go up in flames in the biggest financial disaster in U.S. history? When Bloomberg published an editorial entitled “Pension Crisis Too Big for Markets to Ignore“, it simply confirmed what a lot of people already knew to be true.  Pension funds all over America are woefully underfunded, and they have been pouring mind boggling amounts of money into very risky investments such as Internet stocks and commercial mortgages.  Just like with subprime mortgages in 2008, this is a crisis that everyone can see coming well in advance, and yet nothing is being done about it. 
On a day to day basis, Americans generally don’t think very much about pensions.  Most of those that have been promised pensions simply have faith that they will be there when they need them. 
Unfortunately, the truth is that pension plans all over the country are severely underfunded, and this has already resulted in local fiascos such as the one that we just witnessed in Dallas. 
But what happened in Dallas is just the very small tip of a very large iceberg.  According to Bloomberg, unfunded pension obligations on a national basis “have risen to $1.9 trillion from $292 billion since 2007″… 
As was the case with the subprime crisis, the writing appears to be on the wall. And yet calamity has yet to strike. How so? Call it the triumvirate of conspirators - the actuaries, accountants and their accomplices in office. Throw in the law of big numbers, very big numbers, and you get to a disaster in a seemingly permanent state of making. Unfunded pension obligations have risen to $1.9 trillion from $292 billion since 2007. 
And of course that $1.9 trillion number is not actually the real number. 
That same Bloomberg article goes on to admit that if honest math was being used that the real number would actually be closer to 6 trillion dollars… 
So why not just flip the switch and require truth and honesty in public pension math? Too many cities and potentially states would buckle under the weight of more realistic assumed rates of return. By some estimates, unfunded liabilities would triple to upwards of $6 trillion if the prevailing yields on Treasuries were used. That would translate into much steeper funding requirements at a time when budgets are already severely constrained. Pockets of the country would face essential public service budgets being slashed to dangerous levels. -  The Economic Collapse

Tuesday, July 26, 2016

World's oldest bank shares halted as the company stands on the brink of collapse

It is indeed troubling when a bank that opened its doors 20 years before Christopher Columbus discovered America, and went on to survive two world wars, the turbulent times of Roman church inquisitions and religious reformations, the renaissance, colonialism, and of course, the conflicts that unified Italy itself, now stands of the brink of bankruptcy 544 years after its inception.

But that is what is happening now to Monte Paschi bank when on July 25, regulators halted trading of the bank's public stock due to an opening 8% drop, on the fears of share price collapse.

Shares of beleaguered Italian lender, Monte dei Paschi (BMDPF) , were suspended from trading early Monday morning after falling by almost 8% after the opening bell. The plunge comes just days ahead of results from the European Banking Authority's most recent stress tests, which are widely expected to reveal a shortfall in Monte dei Paschi's capital buffer. 
The shares fell by  7.6%, to trade as low as €0.28, before being suspended. The stock has fallen by almost 77% in the year to year to date as concerns have built over whether or not the bank can survive in a world where bad loans and low interest rates are eating away at its capital base and European Union regulations make public assistance all but impossible. - The Street
The insolvency of Monte Paschi is a microcosm for all Italian banks, which threaten the global financial system far more than Greece did just two years ago.  This is because Italy's banking system is about eight times greater than its Southern European neighbor, and was catalyst enough in 2008 as part of the PIIGS to help bring about the European financial crisis.

Overall, banking is a lucrative business that can earn a modicum of steady growth by lending to individuals and businesses when interest rates are set at a normal level.  But sadly thanks to the majority of the world's central banks, the dropping of rates to zero and below leaves financial institutions like Monte Paschi to have to speculate on risky assets, and the inevitable result is like we saw with Bear Stearns and Lehman Brothers... complete insolvency when the ponzi schemes eventually collapse.

Tuesday, March 29, 2016

Protected class: Judge ok’s dismissal of student loans for lawyers but leaves out rest of the country

One of the biggest reasons why people have such bitter disdain for lawyers as a whole is because over time, that class of elites will end up taking over an entire government.  And besides the natural positions within the Supreme and District Courts that are stocked full with former J.D.’s, the current President and Vice-President are also former lawyers, with a majority of the House and Senate coming from that vocation as well.
At the start of the 114th Congress on Tuesday, the U.S. Capitol will be a little less lawyerly. But not by much. Members of Congress holding J.D.s will sit in 160 of the House of Representatives’ 435 seats and 53 of the Senate’s 100. - National Law Journal
So perhaps it comes as no surprise that those who run the government would look out for their own far more than the overall American people.  And on March 28, a new ruling out of the U.S. Bankruptcy court in Brooklyn, NY provided a way for students who work towards law degrees to be allowed to dismiss their student loans, while the other 99.4% of in-debt American students are left out in the cold.
No-Justice

Read more on this article here...

Thursday, January 21, 2016

Former Chief economist for the BIS says economy is now worse than in 2007

For more than two years, economists in the alternative media have been warning of a coming economic meltdown that would be worse than the Credit Crisis of 2008 simply because the debts are much bigger, and the underlying problems that led to that crisis have never been addressed.  And now in early 2016, more and more mainstream analysts are jumping onto this bandwagon, with the former Chief Economist for the Bank of International Settlements (BIS) stating on Jan. 20 that the economy is now worse than it was in 2007.
The BIS is known as the central bank of central banks, and plays a key role in facilitating global currency exchanges between nations and economies.  And what gives economist William White credibility in his current assessment of the global economy is the fact that he forecasted and warned of the 2008 economic collapse that led to the death of Lehman Brothers and Bear Stearns.

Read more on this article here...

Tuesday, December 29, 2015

Ontario becomes ground zero for citizens being asked to pay for the debts of their government

$160,000.  That is how much each American ‘virtually’ owes bondholders to cover the government’s nearly $19 trillion in national debt.  And while our taxes are the primary collateral which allows Uncle Sam to borrow from a privately owned central bank, is there a chance sometime in the future where the government may use force, coercion, or even confiscation to pay these obligations that neither you nor I volunteered for?
US-Public-Debt-per-Taxpayer-Apr-2015
The answer to that may be coming sooner than we think, as our neighbor to the North, and in particular the City of Ontario, Canada, is so deep in debt that they are now asking their own people to voluntarily donate monies outside of proscribed taxation to pay on the city’s debt before insolvency bring it crashing down.
Read more on this article here...

Monday, December 22, 2014

East Cleveland mulls over filing bankruptcy

While the cities of Detroit and Stockton, California made headlines a couple of years ago for being the first major municipalities to file for bankruptcy protection, the next one in America may be just around the corner.  On Dec. 11, members of East Cleveland’s city council publicly talked about the potential for the Ohio municipality to have to file bankruptcy because the Cleveland suburb is pretty much insolvent.


Read more on this article here...

Monday, July 21, 2014

On cusp of German bail-in vote, 50% of cities stand on verge of insolvency

On July 9, German legislators voted to approve bank bail-ins as the primary solution for re-capitalization the next time their financial system experiences a collapse or major crisis.  Thus following in the footsteps of the Cyprus Experiment, which saw depositors lose upwards of 60% of the money they thought was safely protected in their banks and financial institutions, German depositors, not the taxpayers, are now on the hook to pay for a bank’s corruptness, risky bets, or bad decisions.

However, even this egregious new policy may pale in comparison to what is coming for the German state as it is now estimated that 50% of all municipal governments within the chief Eurozone nation are underwater, and on the brink of insolvency and bankruptcy.




Read more on this article here...

Sunday, December 8, 2013

Eric Sprott: My greatest fear is that governments are broke

On Dec. 6, billionaire and asset manager Eric Sprott spoke on the current economic climate surrounding nations and central banks, and how the insolvency of governments is creating the biggest fear for the global financial system.
"King World News: What is your greatest fear going forward?  What’s your worry?
Eric Sprott: My greatest fear is that government’s are broke.  It’s so obvious, I mean, that’s the easiest call in the world.  And to think that 1000 economists have signed up for this (The Inform Act ), including 15 Nobel prize winning economists, is just tantamount to recognition of what the elephant in the room is."

Read more on this article here...

Tuesday, August 20, 2013

Had a bankruptcy last year? No Problem! FHA has a mortgage for you as Obama pushes to re-inflate housing bubble

As mortgage lenders around the country begin to suspend operations and layoff workers, the Federal Housing Administration (FHA) is ready to throw away financial sense and offer Americans a new loan program.  In an FHA Mortgagee Letter 2013-26 published this month, the largest mortgage backer in the country is offering loans to people who have gone just a full year since filing for bankruptcy with the intention of re-inflating the housing bubble.



Read more of this article here...

Wednesday, April 17, 2013

Philadelphia could be next to join Stockton in declaring municipal bankruptcy

Last week, a judge ruled that Stockton, California could declare bankruptcy to seek protection from their debt and creditors, and on April 16, it has been discovered that the city of Philadelphia is also investigating bankruptcy options in lieu of their massive debt and pension obligations.



Philadelphia Mayor Michael Nutter, whose municipality has the lowest credit rating of the five most-populous U.S. cities, will address investors at a conference financed by underwriters and closed to the public and the press.
The invitation bills tomorrow’s meeting as a chance to hear “Philadelphia leaders and investors discuss building the city’s future.”
Philadelphia is hoping to attract investors for the city, which is rated three steps above junk by Standard & Poor’s. The city and its authorities have $8.75 billion in outstanding debt as of September, according to bond documents. Philadelphia’s pension system is 47.6 percent funded this year, the documents say. - Bloomberg via Mish Shedlock

Should Philly be forced to sell city assets, or follow through with bankruptcy preceedings, then it will open the floodgates to a large number of other cities like Detroit, Camden, and perhaps even Chicago who are experiencing the same debt and underfunded pension levels.

Sunday, March 3, 2013

The 12 ways to get rid of student loan debt through bankruptcy

In 2005, Congress, along with President Bush, changed the bankruptcy laws that made discharging certain debts harder to do for many Americans.  While seemingly innocuous eight years ago, the one area that has grown the fastest in the arena of consumer debt is the one area that is exempt from discharge under a bankruptcy.

Student Loans.

In Jan. of 2013, student loand became the largest consumer debt held by the American people, even surpassing that of credit card debt.  And with President Obama passing legislation to have the Federal government control over 85% of student loans, the government now holds the Damaclese sword over tens of millions of Americans who are burdened with up to six figure debt, with little opportunity to pay them off.

But there is hope, and by this, certain loopholes by which one can discharge their student loan debts in a bankruptcy.  It does not cost much, except the fact that it entails a person selling their soul to the government machine, and placing their future entirely in the hands of 'big daddy'.

According to the law, the judge has the discretion to dissolve any debts or judgements when there is sufficient cause to call for an 'adversary proceeding'.  In this proceeding, a judge may determine there are adequate reasons to have debts absolved, even under the laws pertaining to bankruptcy.

But in doing so, the individual must prove that they have mitigating circumstances which make it impossible for them to pay off these debts.  One primary reason to seek an adversary proceeding is mental illness.

Under the hopelessness criteria, one can demand a proceeding is they can determine that they have a serious mental or physical disability, for the debtor or the debtor's dependents.

What this means of course, is that you will officialy be rules mentally or physically ill, and place yourself in the database which now limits other rights and liberties one would have without government determination.  ie.... you would not be allowed to own a gun, and the government at their discretion, can force you onto medical procedures or prescription drugs against your will and desire.

Of course, there are 11 other alternatives to seeking recourse to have student loan debts discharged under special circumstances in a bankruptcy, and below are a list of options one can use to call for an adversary proceeding.

Friday, June 1, 2012

Wells Fargo seeks to over buildings from bankrupt Stockton, California

When the banks want their pound of flesh, it doesn't seem to matter whom they take it from.  For the city of Stockton, California, their fiscal irresponsibility which has led to bankruptcy filings is also now triggering Wells Fargo to seize City Hall for delinquent mortgage payments.



The Stockton City Council announced Wednesday that they will look at bankruptcy contingency plans after Wells Fargo seized the new city hall building.

The city paid $35 million to buy the 8-story building, but was not able to move in because of its money problems, and recently stopped making debt payments all together. This is the fourth building that was repossessed by Wells Fargo; the bank seized three city parking garages for the same reason. -
Economic Policy Journal


Banks thrive on government's allowing them to loan out printed money, with no intrinsic value.  So it should come as no surprise when these same banks take physical assets from the same government for failure to pay off debt accrued by borrowing the same money they allowed the banks to print for nothing.

Monday, April 2, 2012

Bankruptcy filed for the makers of Pink Slime food additive

Sometimes, there is justice and karma in the wide wide world.  Approximately a week after the mainstream media reported on the intrusion of the food additive known by its slang term 'pink slime' into a large portion of the American food supply, its corporate maker, AFA Foods, is declaring bankruptcy.



In the first of two major bankruptcy stories du jour (the next one coming up shortly), we learn that AFA Foods, best known for being the maker of "pink slime", and a portfolio company of labor unions and Clinton afficionado Ron Burkle and his PE firm Yucaipa, has just filed for bankruptcy. The reason? The sudden public realization what pink slime is, and just how prevalent it is - perhaps it is best to think of it as the Bernie Madoff of the food industry - it was always there, yet it took a wholesale shift in public awareness and consciousness for the firm to realize it would have been prudent to come up with a slightly different name for its ground-beef product. As for whether or not the company is going to the pink sheets, well no. But one thing is certain: the management team is about to get a pink slip. - Zerohedge

Friday, January 27, 2012

Iconic companies standing on the precipice of bankruptcy

Over the past month, two iconic companies filed for bankruptcy as the economic recovery proves to be little more than smoke and mirrors, and a growing of printed money from the Fed while GDP and consumers spend less and less.  Eastman-Kodak and American Airlines were some of the first, but a new list by Business Insider shows that up to 17 more stand on the precipice of bankruptcy themselves.

Caesars Entertainment
 Financial distress probability: 7.28%

Clearwire (CLWR)
Financial distress probability: 9.54%

McClatchy (MNI)
Financial distress probability: 10.16%

AK Steel Holding (AKS:US)
 Financial distress probability: 10.98%

Republic Airway Holdings (RJET)
 Financial distress probability: 11.12%

Tennessee Valley Authority
 Financial distress probability: 11.82%

Office Depot (ODP)
Financial distress probability: 11.90%

Barnes & Noble (BKS)
 Financial distress probability: 12.05%
Standard Pacific (SPF)
Financial distress probability: 13.35%

Dynegy (DYN)
 Financial distress probability: 13.93%

Talbots (TLB)
Financial distress probability: 14.86%

KB Home (KBH)
 Financial distress probability: 15.52%

Unites States Postal Service
 Financial distress probability: 17.30%

Thomas Cook Group (TCG:LN)
 Financial distress probability: 17.94%

Air France (AF:FP)
 Financial distress probability: 18.99%

Imperial Sugar (IPSU)
 Financial distress probability: 20.37%
Dendreon (DNDN)
Financial distress probability: 30.62% - Business Insider

Financial distress probabilities was calculated by GovernanceMetrics International.

Thursday, January 12, 2012

Sears new brand: stock shorting and dissolving locations

Sears holdings received another death knell blow this morning when Cit Group made the decision to stop financing loans to suppliers, which are a vital part of their payables accounting practice.

And here, as there, we expect shorting to death to commence in 5...4...3..." Subsequently, when the company was downgraded to triple hooks S&P we said that "Accounts Receivable about to become one big perpetition charge off", the implication naturally being that the company is about to lose its vendor financing - which for retailers is the last step before outright default. Sure enough, the WSJ reports that this is precisely what happened. "Struggling Sears Holdings Corp. suffered another setback when a large lender said it would no longer finance loans to suppliers awaiting payment from the company. - Zerohedge

For those who can remember, something similar took place between General Motors, and one of their primary distributors Delphi just before the automobile's bankruptcy.

Tuesday, December 27, 2011

Capital One: Your friend in the debt collection business

It appears that the banking cartels care not for the rule of law, or even the basic decency of ensuring the people they harrass over outstanding debt are viable by law to be collected upon.  In a growing lawsuit by many former customers on Capital One, it appears that the credit card company was trying to get people to pay for charges that were already cleared up in bankruptcies.

Filing and completing bankruptcy proceedings is supposed to free consumers from paying any outstanding debt to credit card companies. But that hasn’t stopped Capital One, one of the leading credit card lenders, from going after bankrupt Americans.
More than 15,000 times, Capital One has taken individuals who have gone bankrupt to court in an effort to squeeze more money out of them. To do so knowingly is against the law. The company claims it just made a mistake…several thousand times.
Of the 15,500 people subjected to Capital One lawsuits, more than 800 of them have filed counter-suits to stop the company.
One bankruptcy judge, David Houston III in Aberdeen, Mississippi, plans to demand that representatives of Capital One appear before him in his court to explain its debt-collection practices. The judge previously rejected the company’s request to throw out a lawsuit that alleged Capital One sought $43,396.59 that was legally erased in an earlier bankruptcy case filed by the same person.
“I want some proof from the company that this was a legitimate error and not a conscious, malevolent effort to go out and collect a debt that’s been discharged,” Houston told The Wall Street Journal.
According to the Journal, “In 2008, a U.S. bankruptcy trustee in Massachusetts accused Capital One of illegally trying 5,600 times to collect debts already wiped out by a bankruptcy judge.” That same year, Capital One was itself saved from potential bankruptcy when it received a $3.55 billion bailout from U.S. taxpayers as part of the Treasury Department’s Capital Purchase Program.
The founder, chairman and chief executive officer of Capital One is the ironically named Richard Fairbank. - All Gov.com

As we know from 2008... what are laws and rules for the little people when it comes to banks and their own insatiable appetite to consume the wealth of everyone like an economic black hole.

Monday, October 31, 2011

Recipe for bankruptcy: Hire Jon Corzine to run your state or business

MF Global, a worldwide bond clearing house, declared bankruptcy today and it has sent shockwaves through the equity and bond markets.

However the most interesting thing about this failed business is who was running the show... ex New Jersey Governor Jon Corzine, who was ousted from office for incurring massive debts in the state, and nearly bankrupting it as well.

So the moral of the story is... if you want to turn your business or government agency into a bankruptcy candidate, just hire the dumbest man in the room, Jon Corzine, and it will happen in just a few short years.

On a side note... you wonder why CNBC has not really covered this major event?  Because MF Global appears to OWE the media station cash!  The hypocrisy of unbiased journalism, especially in the business realm.

Full bankruptcy filing attached below, where we find that in addition to owing JPM and Deutsche Bank $1.2 billion and $1 billion respectively, as bond trustees, the 7th biggest unsecured creditor with $845,397, is... CNBC? Perhaps that explains the objective reporting the Comcast station has provided on the topic of MF over the past several weeks, considering the caliber and quality of guests invited to opine. - Zerohedge

Oh... and the reward for bankrupting a company?  Try 12.1 million dollars, as this appears to be the golden parachute for Corzine who left as the shite hit the fan.

Wednesday, October 12, 2011

The capital of Pennsylvania declares bankruptcy

In what appears to be the first state capital to toss up its hands and cry 'mama', Harrisburg, Pennsylvania has officially voted to declare bankruptcy.

We are confident the spinmasters will spin the first major domino in the muni crisis as bullish: after all it "removes uncertainty." Bloomberg reports that "The city of Harrisburg, Pennsylvania, facing a state takeover of its finances, filed for bankruptcy protection following a vote by the City Council, according to a lawyer for the council.Mark D. Schwartz, a Bryn Mawr, Pennsylvania-based lawyer and a former public finance banker for Prudential Financial Inc., said he filed the documents by fax to a federal bankruptcy court last night. The filing couldn’t be confirmed with the U.S. Bankruptcy Court in Harrisburg.The state capital of 49,500 faces a debt burden five times its general-fund budget because of an overhaul and expansion of a trash-to-energy incinerator that doesn’t generate enough revenue. “This was a last resort,’’ Schwartz said in an interview after the council voted 4-3 to seek bankruptcy protection. - Bloomberg via Zerohedge
While everyone was watching for cities in Alabama to be the first major bankrupt municipality, Harrisburg swooped in last night and would not be denied the opportunity.
Look for more riots, flash mobs, and violence to continue in the state.

Monday, July 18, 2011

Borders Books to Close Their Doors

Reality set in today as retail bookseller, Borders Books, came the realization that print media, which includes the hardback book industry, is no longer a viable and growing industry, and will close its doors since no hedge fund or private investor saw fit to purchase the ailing company.

Long live the Kindle!  Until the blue-ray version of the kindle makes it obsolete as well.

The Borders Group, the bankrupt 40-year-old bookseller, said on Monday that it will move to liquidate after no last-minute savior emerged for the company.
Borders said in a press release that it will proceed with a proposal by Hilco and the Gordon Brothers Group. That liquidation plan will be presented to the federal judge overseeing the company's bankruptcy case on Thursday.

http://finance.yahoo.com/news/Borders-Calls-Off-Auction-nytimes-1678947798.html?x=0