☆ American “Frackers”: Bankers, Brokers, And Investors Can Feel “Seismic” Tremors In The Oil Bubble

News Analysis: The much vaunted “American Oil Fracking Technology” which the Mass Media loves to extol, is now being confronted with World Oil Over-Supply Realities. For American Frackers: Bankers, Brokers, and Investors can feel “seismic” tremors in the Oil Bubble.

Middle East Oil Producers (MEOPs), to their credit, did not cut oil production (as the “Masters of the Universe” for Oil, had forecasted). Instead, they are letting the “Law of Supply and Demand” burn out the vestiges of ‘Oil Frackers and Fracking’ around the globe. Since the “Lifted” costs from traditional oil production methodologies are considerably less, these ‘MEOPs’ can merely continue doing what they have done for decades; This, while the “American Technology Frackers” ‘Bite the Dust’ one by one in seriatim fashion.

Some International Businessmen are in amazement that Bankers, Brokers, and Small Investors were so naively sure about the anticipated behavior of ‘MEOPs’, that they had placed over an estimated $200 Billion Dollars with the ‘Frackers’; now they will feel the Oil Bubble Tremors (before it bursts). So much for the cost of arrogance.

We, at JSPP, had predicted the Reality of Oil Bubble Bursting long ago (even before the Mass Media jumped on the Pro-Fracking Bandwagon). Why? Because the “Law of Supply and Demand” in Commerce, is Inviolate!

Traditional Oil Suppliers typically have lower ‘Lifted Costs’ than ‘Frackers’; this, along with a ready supply of oil that they can send to market at a reduced price. The ‘MEOPs’ logic (with their ‘Deep Financial Pockets’): “These lower prices may be somewhat uncomfortable for our economies, but it is NOT FATAL to our operations”; as is the case for many ‘Frackers’. As the ‘MEOPs’ provide more and more oil, there will be logarithmic damage to the ‘Frackers’.

As the estimated $200 Billion Dollars in loans to ‘Frackers’ becomes due, and is not paid, the tremors felt in the American Oil Business will migrate throughout the economy. Since the price of Oil could go as low as $22 to $28 Dollars a barrel, one thing is for certain, many people filling up their cars with gasoline, at American Gas Stations, will have smiles on their faces.

As for the Bankers, Brokers, and Investors, who ‘bit’, was not it reported that ‘Fracking Can Cause Seisms’?

Reality.

Reference: http://rt.com/business/220619-shale-debt-us-companies/

Confidence Games: If Two And Two Add Up To Five, Investors Are In Trouble

News Analysis: An Istanbul, Turkey, Currency Trader, of apparent British origins, is suspected of bilking his clients for more than 130 Million Pounds ($200 Million Dollars). Using various charades, he communicated to his unfortunate investors that he was not able to pay them back  their monies. Now, this apparent  British “Bernie Madoff” style Trader made off with investors’ funds. They should have realized, in  Confidence Games: If two and two add up to five, Investors are in trouble.

We think that in 2015, many more Financial Deviances will be sprouting up like weeds on Wall Street. Accountants, Arbitrageurs, Bankers, Brokers, Fund Operators, (AABBFOs) etc. will be ‘hard-pressed’ in the forthcoming economy, which we foresee. Flimsy investment advice by self-interested “Professionals” will not be able to cope with then-present economic realities. Investors will lose billions of Euros in such investments; this, both due to fraud but also ineptness of judgement.

As always, we suggest: “Trust, But Verify”.

If you want Business and/or Investment Advice, seek out those Seasoned Professionals who put their Clients First, and they, Second. Beware of those “AABBFO” ‘Professionals’ who have the mentalities of Trollops. They will not give you a ‘Treat’ but a ‘Trick’.

Reality.

Reference: http://www.telegraph.co.uk/news/uknews/crime/11307920/Police-let-trader-at-centre-of-130m-con-slip-through-their-fingers.html

☆ Bermuda Casino Gambling; “Smell Tests” Are Not Required [Due To Sea Breeze]?

News Analysis: The Senate of Bermuda voted to allow for three Gaming Establishments on the island. First one would be built, then the next two would follow. During the Senate debate, the question of strengthening the proposed Casino Law to preclude miscreant behavior was suggested by some Senators. The other Senators thought such negative activities were covered already in Bermuda’s Criminal Code. The “Smell Test”  sought, was dispensed with by the majority.

It is interesting for International Businessmen, of which Bermuda has many, to note that the “Free Market Place” is hardly such. Bermuda Is To Have Casino Gambling; “Smell Tests” Are Not Required [Due To Sea Breeze]?

Internationally, there will always be the lurking “Shtarkers” who want to take advantage of the “Freiers” in all economic activities; the London Interbank Offered Rate (LIBOR) Scandal is just one example. Another example is the “Afternoon Gold Fixing Rate” in London.

One can find many examples of Accountants, Arbitrageurs, Bankers, Brokers, Fund Pool Managers, and others looking to ways to “Game the System”; the ‘Morality of the Marketplace” currently being a giant ‘Sinkhole’. “Smell Tests” can be very helpful to the Wise.

One should realize that while the aforementioned activities are actual, the adage to those who want to enter this melee is: “If you are afraid of receiving ‘fast ball pitches’, do not get up to the ‘plate’ to bat.”

Smart International Businessmen always ‘Sleep With One Eye Open”.

Reality.

Reference: http://www.royalgazette.com/article/20141217/NEWS/141219734

☆ Bank Fines For Banks Are As Impressive To The Bankers Therein As Glasses Of Mediocre Wine

News Analysis: Bank Fines For Banks Are As Impressive To The Bankers Therein As Glasses Of Mediocre Wine; since at the “Career Level” the surreptitious Bankers feel no pain, therefore, ‘No Gain”. Until Governments Criminally Prosecute Bankers Personally for their Corrupt Syndicated Cabals, fines to the Banks, of which they are employed, mean little.

Of Banking Miscreants, proven guilty in a Court of Law: Not many get discharged from Banking; Fewer have Court Orders forbidding them to engage in any Financial Services in their Country; NONE (we know of) have prohibitions about their engaging in such Economic Activities in any of the Countries in the United Nations. “Why Not?”, victims ask. Does not “Financial Treason” impact everyone directly or indirectly.

Until Governments get serious about the “Economic Debacles” Bankers and their Minions cause, they will not “Fly Straight”; there is too much financial incentive for them to do otherwise.

The “World Economic Blow-Out of 2008” was largely caused by such Banking Schemers many Economists, Forensic Accountants, and Law Enforcement Officials think.

The Crooked Bankers are analogous to Termites eating inside the leg of a wooden Three-Legged Stool; No Country wants to sit on such a stool.

Reality.

Reference: http://rt.com/business/banks-pay-us-penalties-313/

☆ Bankers Who Support Tax Evasion Are “Banksters”

News Analysis: Everybody living in their ‘Own’ Countries are expected to abide by, and respect their Laws (including Tax Laws). Moving their Monies to other Countries to escape Taxation may provide Immediate Financial Relief (but eventually, severe Grief). As we have maintained, from decades of International Exposure: “There Are No Long Term Secrets”.  To think that Tax Authorities cannot find ‘Illegal’ (in its broadest sense) Funds is Naïve.

Bankers Who Support Tax Evasion Are “Banksters” and will turn on their Depositors to “Save Their Own Hides”. It defies credibility when “Banksters” who are obviously engaging in Tax Evasion for their Depositors, plead Ignorance of the Transactions. Forensic Accountants can track the ‘Paper Trails’ of the Depositors and the subsequent hiding of Accounts by the “Banksters”. Legitimate Bank Employees can, and some have already, turned Account Records over to Tax Authorities. Unless EVERYONE working in a particular Bank is Corrupt, (unlikely), the foolish Banksters should expect to be revealed for what they are: Thieves Feigning Financial Legitimacy.

If one does not like the Tax Rates or other elements of a Country’s Tax System, he or she: May attempt to change the Laws; May renounce their Citizenship and move elsewhere; May pay their Taxes and complain about them to their ‘Significant Other’; or, perhaps best of all, May Earn More Money. Taxes Not Paid (but hidden in Accounts by “Banksters” in other Countries, is really ‘Sovereign Nation Treasury Theft’ by the Depositor(s); Nothing Less.

Until  “Banksters” PERSONALLY feel the Pain from their Gain, there will be many applying for those Financial Positions (since the rewards can be significant). Lengthy Prison Sentences for these Crooks (usually wearing ‘Business’ Suits, White Shirts, and Ties) can, however, be assured to reduce the Enthusiasm of Applicants to be ‘Banksters”.

Reality.

Reference: http://america.aljazeera.com/articles/2014/2/26/credit-suisse-execsdeeplyregrethelpingamericansevadetaxes.html

Turkmenistan’s President Seeks Legitimate Bankers In His Country

News Analysis: Turkmenistan President Mr. Gurbanguli Berdymukhamedov took the unusual step of firing numerous Central Bank and other Banks’ Officials who were apparently engaging in Significant Banking Irregularities. In December, 2013, the President chastised the Heads of 10 Banks for Improprieties.

Energy rich Turkmenistan, a country covering 488,000+ Km2 ( 188,000 Mi2) with 5,100,000+ Citizens, has Natural Gas and Oil Deposits which are not fully explored. Some people now think the money flow into this Country may have potentially corrupted some Officials in Ashgabat, its Capital and elsewhere. Countering such greed, was the Firm Command of the President. The scope of his action is unparalleled by other countries who are tolerant of such perverse Banking Insider Irregularities. 

The President demonstrates: “Good Leaders Lead By Example”. To his credit, he understands that: “In Large Grain Silos, stuffed with a Country’s Harvest of Wheat, One who has the Wisdom to look, will always find Bugs.”

Many people around the World are coming to realize that Some Bankers, who love to profess their Amity, Legitimacy, and Objectivity in their Profession, are perhaps better “Bank Robbers” than ‘Bank Robbers’.

Reality.

 Reference: http://en.ria.ru/business/20140110/186407894/Turkmen-Leader-Fires-Central-Bank-Head-in-Major-Shake-Up.html

★ Wealth Advisers: Thousands Are Available Now (To Increase Bankers’ Wealth)

News Analysis: Banks are hiring additional Wealth Advisers, beyond the present Thousands, (to increase the Wealth of Bankers). As more of these people are hired, one must ask: What “Real-World” Experience do they have in: Aeronautics, Agriculture, Building Construction, Manufacturing, Mining, Science, Shipping, or Technology? These are Core Industries, in varying degrees,  for Countries World-Wide.

All too often, the Public is addled by the Marketing by Financial Institutions (FI’s)  into thinking the ‘FI’s’ have all the answers of the Financial Future of Humanity; Hardly!

The end-result desired by the ‘FI’s’ is ‘significant’ Profitability Increases for themselves FIRST. As a follow-on, Client’s Monetary Growth above (however slight) a country’s Consumer Price Index  is Acceptable. A Party interested in Wealth Retention will be appeased by such mediocre performance, hopefully.

2013, was a well ‘Manipulated Market’ for Stocks (as one views a Snap-Shot). To those ‘FI’s’ who point to Clients’ Wealth increases in 2013, one can ask: “Please repeat this performance in 2014”. Many experienced International Investors  think ‘FI’s’ will be “Rolling Sevens” as in a ‘Crap Game’. To add ‘legitimacy’ to 2013 Stock Market Performance, one can expect that 2014 will also come in ‘Like a Lion’ (but ‘Go Out Like A Lamb’).

The “Legitimacy Factor of 2014” in support of 2013’s “Manipulated Market” should ‘Peter-Out’ in approximately a May-June, 2014, time-frame. By continuing out several months into 2014, the Public may think that all-is-well and invest their funds without discretion. ‘FI’ Wealth Managers will be more than happy to accept the funds. The public will be reassured by the ‘FI’s’ that “2014 will replicate or out-do 2013 AND continue into 2015!” Retail and Investment Bank Managers will be “Shorting their Investments while ‘Going Long’ for their Clients”; this is REAL WORLD History for many Wall Street Bankers in particular. “Fleece the Freiers” is their Mantra.

Wise Investors understand that a “One-Year Performance Snap-Shot” is hardly indicative of a Substantial Enduring-Over-Time Investment Market. It is more suited to ‘Day-Traders’. It is also very indicative of a “Artificially Created Bubble”! Where is the Support for this 2013 Market? There is minimal: Manufacturing of Big-Ticket Consumer Items such as “Business Jets” and Yachts: Large Service Contracts; Large Private Employment of Persons with College Degrees or Advanced Degrees.

It appears that, regarding Employment (at least in America) the Federal Government has had the largest employment increase. The National Security Agency and Transportation Security Administration are both bulging with employees many people think. These employees lessen the Unemployment figures which the ‘White House’ loves to allude. 

For 2014, a Wise Investor will have to consider: “Should my Gains remain (by ‘Cashing Out’) or ‘Play and possibly Pay’ on or before a Stock Market Collapse?”

As 2013 ends today, the “Bubble Masters” will be celebrating the New Year with Champagne (as they gleefully anticipate the next Incipient Bubble; of their creation).

Reality.

 Reference: http://www.bizjournals.com/sanjose/news/2013/12/30/wells-fargo-bofa-hunt-talent-to-serve.html?page=all

☆ European Union Banking: A “Haircut” And “Shave” For Everyone?

News Analysis: The European Union Banking Agreement recently agreed to, some say, gives False Hope regarding Control Over and Liquidation, if necessary, of ‘Non-Performing’ Banks. Contractually, many various groups would assess the viability of a Bank, and if needed, Bond Holders, Stock Holders, and DEPOSITORS would have to pay for the pending debacle (as was done in Cyprus). In this manner, Governments would not be financially  liable for Bad Management at Banks. Why a Mere Depositor who has NO CONTROL over Banking Decisions nor Ownership directly or indirectly, in the Bank, should be held liable is baffling to many people. This would be analogous to sending One’s Shirts to a Laundry and being liable for that Business’s Debts! What is the difference? As to Depositors, Very Specious Thinking brought about such a European Union Banking Decision, one might argue. 

That various groups composed of a total of over 100 persons are to efficiently and quickly assess a Bank is a ‘Mental Fantasy’, some Bankers say. Debate for weeks is not acceptable during such events.

A 55 Billion Euro Fund is to be developed for the cover collapses of Banks; many people think that is too little.

Also, are there ANY provisions to have Forensic Accountants review a “Collapsing” Bank’s Books, immediately prior to default? This, to see if any Illegal Financial Machinations occurred by the Bank’s Management? If not, why not? What Punitive Measures are in force for illegal or ‘tainted’ Banking activities?

“Bankers, in their role of ‘Bankers’, control the Monies of OTHERS, Not Their Own.” All too often, it seems that this Simple Premise ‘Escapes’ the conscious mentality of Bankers; that is when Defalcations and other problems arise.

It appears to many Europeans that, as regards to this ‘Banking Solution’, “Improper Medication” to a Patient may make him sicker than his Actual Illness.

Reality.

Reference: http://www.spiegel.de/international/business/weak-eu-banking-union-could-have-dangerous-side-effects-a-940065.html

Banks: Too Big To Fail; Managements Do Not Go To Jail

News Analysis: Banks Too Big To Fail;  Managements Do Not Go To Jail since the Regulations and Coded Punishments Do Not Fit The Billion Dollar Crimes. World-Wide Banking has morphed into Fewer Big Players. As such, a Global Cabal of several Lead Banks can ‘illegally’ Control Hundreds of Billions of Dollars in any Financial Arena they choose. Since Some Bankers have “AFAB” (Anything For A Buck) as their Credos, they act Amorally.

National Bank Regulators in  Countries state they are Serious about Preventing “International Wholesale Fraud With A Pen”. If actually so, there are Two Elements that MUST BE REALIZED by the Culprits: 1. They are most certain to be caught; 2. The PAIN of Long Term Incarceration is GREATER Than The GAIN. Banks and Bankers merely paying fines mean NOTHING; Losing their Freedoms DO.  If either or both of these Precepts are missing there will NEVER be Behavioral Changes in Bankers (or their Attorney or Accountant Advisers).

“Questionably Legitimate”  Bankers in a ‘Scheme’ think  the Abundant Financial Rewards from “Thievery” greatly exceed the minor risk; Statistically this is True, some people say .

Bank Robbers GO TO JAIL; Bankers who ‘Rob’ Do Not. Reality.

Reference: http://www.spiegel.de/international/business/megabanks-like-deutsche-bank-gaining-power-despite-cartel-fines-a-937880.html

Amity Beats Enmity in Money Matters

News Analysis: Amity Beats Enmity in Money Matters Particularly on Cyprus. The Draconian Measures taken against Bank Depositors (Domestic and Foreign), at the Behest of the European Union, are having an effect of bringing Sensible Financial Actions by a few of their Victims. Some of those Greek Cypriots, living in the South, are going to the Northern part of the Island to engage Cypriot Turkish Banks; a very reasonable idea. They are finally forgetting the Rhetoric of Politicians Controlled by ‘Financial Handlers’ and instead, are thinking for themselves; “Political Rhetoric Be Damned”. Since the Turkish Banks, in their collective Wisdom, offer an International Aspect that the South does not, they are preferred as a result.

It is interesting to note that Greece, as well as its ‘Co-Signer ‘ for its Debt, Cyprus, have apparently not Arrested, Convicted, and Imprisoned ONE  Military or Political Leader. Their Personal Greed over the past several DECADES caused this infamous  Economic Debacle. Instead, their Ill-Gotten Gains are in Foreign Bank Accounts [which are allegedly known to Greek Officials].

Why the Citizens of Cyprus and Greece do not use their Legal Remedies to get their monies back from the Military and Political Criminals is perplexing. That the Military and  Politicians do not say anything about their Predecessors is obvious. Good Forensic Accounting is needed [if the Financial Records have not already been destroyed]. 

Of their Bankers, Military, and Political Leaders, both Greeks and Cypriots need to learn: “Trust, But Verify”. If in Doubt of their Veracity, they can then tell any of these “Men of Integrity”: “Oxi!”

Reality.

Reference: http://www.ibtimes.com/cypriots-find-way-out-banking-crisis-how-turkish-banks-may-be-answer-1494604