Sunday, October 30, 2011

ScanEagle Video

ScanEagle Video

Wednesday, October 26, 2011

$600 Trillion is the LOW Estimate

The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System

Most people have no idea that Wall Street has become a gigantic financial casino.  The big Wall Street banks are making tens of billions of dollars a year in the derivatives market, and nobody in the financial community wants the party to end.  The word "derivatives" sounds complicated and technical, but understanding them is really not that hard.  A derivative is essentially a fancy way of saying that a bet has been made.  Originally, these bets were designed to hedge risk, but today the derivatives market has mushroomed into a mountain of speculation unlike anything the world has ever seen before.  Estimates of the notional value of the worldwide derivatives market go from $600 trillion all the way up to $1.5 quadrillion.  Keep in mind that the GDP of the entire world is only somewhere in the neighborhood of $65 trillion.  The danger to the global financial system posed by derivatives is so great that Warren Buffet once called them "financial weapons of mass destruction".  For now, the financial powers that be are trying to keep the casino rolling, but it is inevitable that at some point this entire mess is going to come crashing down.  When it does, we are going to be facing a derivatives crisis that really could destroy the entire global financial system.
Most people don't talk much about derivatives because they simply do not understand them.
Perhaps a couple of definitions would be helpful.
The following is how a recent Bloomberg article defined derivatives....
Derivatives are financial instruments used to hedge risks or for speculation. They’re derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in the weather or interest rates.
The key word there is "speculation".  Today the folks down on Wall Street are speculating on just about anything that you can imagine.
The following is how Investopedia defines derivatives....
A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.
A derivative has no underlying value of its own.  A derivative is essentially a side bet.  Usually these side bets are highly leveraged.
At this point, making side bets has totally gotten out of control in the financial world.  Side bets are being made on just about anything you can possibly imagine, and the major Wall Street banks are making a ton of money from it.  This system is almost entirely unregulated and it is totally dominated by the big international banks.
Over the past couple of decades, the derivatives market has multiplied in size.  Everything is going to be fine as long as the system stays in balance.  But once it gets out of balance we could witness a string of financial crashes that no government on earth will be able to fix.
The amount of money that we are talking about is absolutely staggering. Graham Summers of Phoenix Capital Research estimates that the notional value of the global derivatives market is $1.4 quadrillion, and in an article for Seeking Alpha he tried to put that number into perspective....
If you add up the value of every stock on the planet, the entire market capitalization would be about $36 trillion. If you do the same process for bonds, you’d get a market capitalization of roughly $72 trillion.
The notional value of the derivative market is roughly $1.4 QUADRILLION.
I realize that number sounds like something out of Looney tunes, so I’ll try to put it into perspective.
$1.4 Quadrillion is roughly:
-40 TIMES THE WORLD’S STOCK MARKET.
-10 TIMES the value of EVERY STOCK & EVERY BOND ON THE PLANET.
-23 TIMES WORLD GDP.
It is hard to fathom how much money a quadrillion is.
If you started counting right now at one dollar per second, it would take 32 million years to count to one quadrillion dollars.
Yes, the boys and girls down on Wall Street have gotten completely and totally out of control.
In an excellent article that he did on derivatives, Webster Tarpley described the pivotal role that derivatives now play in the global financial system....
Far from being some arcane or marginal activity, financial derivatives have come to represent the principal business of the financier oligarchy in Wall Street, the City of London, Frankfurt, and other money centers. A concerted effort has been made by politicians and the news media to hide and camouflage the central role played by derivative speculation in the economic disasters of recent years. Journalists and public relations types have done everything possible to avoid even mentioning derivatives, coining phrases like “toxic assets,” “exotic instruments,” and – most notably – “troubled assets,” as in Troubled Assets Relief Program or TARP, aka the monstrous $800 billion bailout of Wall Street speculators which was enacted in October 2008 with the support of Bush, Henry Paulson, John McCain, Sarah Palin, and the Obama Democrats.
Most people do not realize this, but derivatives were at the center of the financial crisis of 2008.
They will almost certainly be at the center of the next financial crisis as well.
For many, alarm bells went off the other day when it was revealed that Bank of America has moved a big chunk of derivatives from its failing Merrill Lynch investment banking unit to its depository arm.
So what does that mean?
An article posted on The Daily Bail the other day explained that it means that U.S. taxpayers could end up holding the bag....
This means that the investment bank's European derivatives exposure is now backstopped by U.S. taxpayers. Bank of America didn't get regulatory approval to do this, they just did it at the request of frightened counterparties. Now the Fed and the FDIC are fighting as to whether this was sound. The Fed wants to "give relief" to the bank holding company, which is under heavy pressure.
This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input.
So did you hear about this on the news?
Probably not.
Today, the notional value of all the derivatives held by Bank of America comes to approximately $75 trillion.
JPMorgan Chase is holding derivatives with a notional value of about $79 trillion.
It is hard to even conceive of such figures.
Right now, the banks with the most exposure to derivatives are JPMorgan Chase, Bank of America, Goldman Sachs, Citigroup, Wells Fargo and HSBC Bank USA.
Morgan Stanley also has tremendous exposure to derivatives.
You may have noticed that these are some of the "too big to fail" banks.
The biggest U.S. banks continue to grow and they continue to get even more power.
Back in 2002, the top 10 U.S. banks controlled 55 percent of all U.S. banking assets.  Today, the top 10 U.S. banks control 77 percent of all U.S. banking assets.
These banks have gotten so big and so powerful that if they collapsed our entire financial system would implode.
You would have thought that we would have learned our lesson back in 2008 and would have done something about this, but instead we have allowed the "too big to bail" banks to become bigger than ever.
And they pretty much do whatever they want.
A while back, the New York Times published an article entitled "A Secretive Banking Elite Rules Trading in Derivatives".  That article exposed the steel-fisted control that the "too big to fail" banks exert over the trading of derivatives.  Just consider the following excerpt from the article....
On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.
The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.
So what institutions are represented at these meetings?
Well, according to the New York Times, the following banks are involved: JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America and Citigroup.
Why do those same five names seem to keep popping up time after time?
Sadly, these five banks keep pouring money into the campaigns of politicians that supported the bailouts in 2008 and that they know will bail them out again when the next financial crisis strikes.
Those that defend the wild derivatives trading that is going on today claim that Wall Street has accounted for all of the risks and they assume that the issuing banks will always be able to cover all of the derivative contracts that they write.
But that is a faulty assumption.  Just look at AIG back in 2008.  When the housing market collapsed AIG was on the wrong end of a massive number of derivative contracts and it would have gone "bust" without gigantic bailouts from the federal government.  If the bailouts of AIG had not happened, Goldman Sachs and a whole lot of other people would have been left standing there with a whole bunch of worthless paper.
It is inevitable that the same thing is going to happen again.  Except next time it may be on a much grander scale.
When "the house" goes "bust", everybody loses.  The governments of the world could step in and try to bail everyone out, but the reality is that when the derivatives market comes totally crashing down there won't be any government on earth with enough money to put it back together again.
A horrible derivatives crisis is coming.
It is only a matter of time.
Stay alert for any mention of the word "derivatives" or the term "derivatives crisis" in the news.  When the derivatives crisis arrives, things will start falling apart very rapidly.

Monday, October 24, 2011

DEAL

$732,300
 SPECTACULAR VIEWS AND VALUE! SITUATED ON 5 ACRES WITH SWEEPING NORTH CAVE CREEK MOUNTAIN VIEWS, THIS 3 BEDROOM PLUS DEN CONTEMPORARY WITH A 4 CAR GARAGE, PLUS A 1 BEDROOM GUEST HOUSE WITH FULL KITCHEN, LAUNDRY AND 1 CAR GARAGE HAS IT ALL! CENTER ISLAND KITCHEN WITH 6 BURNER GAS RANGE, LAP POOL, SPA, ELEVATOR, FLOOR TO CEILING WINDOWS, MORE! BAC BANK OWNED PROPERTY--BANK OF AMERICA PREQUALIFICATION REQUIRED ON ALL FINANCED OFFERS. HOME BEING SOLD AS IS WHERE IS. BUYER TO VERIFY ALL INFORMATION DEEMED IMPORTANT. CASH TRANSACTIONS ARE SUBJECT TO SPECIAL DEED RESTRICTION. PROPERTY IS ALSO KNOWN AS 4884 E ROCKAWAY HILLS RD.

Sunday, October 23, 2011

In Memory of His Royal Highness


Full name
Sultan bin Abdul Aziz bin Abdul-Rahman bin Faisal bin Turki bin Abdullah bin Muhammad bin Saud
HouseHouse of Saud
FatherKing Abdul-Aziz
MotherPrincess Hessa Al-Sudairi
Born1924 or 30 December 1930
RiyadhKingdom of Nejd and Hejaz
Died21 October 2011 (age c. 80s)
New York CityUnited States
ReligionIslam

Vaux-le-Vicomte

 The Château de Vaux-le-Vicomte is a baroque French château located in Maincy, near Melun, 55 km southeast of Paris in the Seine-et-Marne département of France. It was built from 1658 to 1661 for Nicolas Fouquet, Marquis de Belle ÃŽleViscount of Melun and Vaux, the superintendent of finances of Louis XIV.

The château was in many ways the most influential work built in Europe in the mid-17th century and the most elaborate and grand house built in France after the Château de Maisons. At Vaux-le-Vicomte, the architect Louis Le Vau, the landscape architect André le Nôtre, and the painter-decorator Charles Le Brun worked together on a large-scale project for the first time. Their collaboration marked the beginning of a new order: the magnificent manner that is associated with the "Louis XIV style" involving a system of collective work, which could be applied to the structure, its interiors and works of art and the creation of an entire landscape. The garden's use of a baroque axis that extends to infinity is an example of this style.





In the 1979 James Bond movie "Moonraker," actor Richard Kiel's steel-toothed character, Jaws, chews his way through cable-car wires and survives a plunge from the top of Iguazu Falls—but Mr. Kiel's isn't the only memorable role in the film. An equally striking part is played by the Château de Vaux-le-Vicomte, a spectacular piece of 17th-century French architecture that serves as the location set for villain Hugo Drax's home. When Bond, played by Roger Moore, approaches the château in a helicopter for his first meeting with Drax, the camera pans across the geometrically organized pathways and fountains of the formal gardens before lingering on the main building, whose limestone facade casts a shimmering reflection in the waters of a surrounding moat. This stunning aerial view underscores a question then very much on Bond's mind: How could anyone afford to live in such breathtaking splendor?
Château de Vaux-le-Vicomte
The creative team behind the château went on to design the palace at Versailles.

Awestruck wonder over money matters is a time-honored tradition for visitors to Vaux, a place whose initial source of funding was—to put it politely—a bit mysterious. The château—in the municipality of Maincy, some 38 miles southeast of Paris—was built as the home of Nicolas Fouquet, King Louis XIV's superintendent of finances, who spared no expense in the pursuit of beauty. Fouquet employed more than 18,000 laborers during the five-year construction of Vaux; he relocated three entire villages just to accommodate the landscaping. His three-man creative team—architect Louis Le Vau, garden designer André Le Nôtre and painter-decorator Charles Le Brun—turned in some of their finest work on the project, every aspect of which conspires to welcome and delight.

Coordinating their efforts with painstaking care, Le Vau, Le Nôtre and Le Brun made sure the house would look from every angle like a perfectly set gem. The building's structure is symmetrical, with two rhythmically massed outer wings flanking an oval central dome that surmounts the interior showpiece—the elegant grand salon. There, a sense of openness and light prevails, as towering French doors pierce the pale stone walls so that the intervening pilasters appear like delicate tracery between the broad expanses of glass. Framed by this wall of windows, the topiaries, manicured lawns and intricately planted flowerbeds of the garden become the room's primary decorations.

Gazing out from the salon, viewers perceive a landscape that seems to stretch, unbroken, to the far horizon, but the gardens are actually constructed on a series of massive terraces. Following the path down the central axis of Le Nôtre's ingenious, exquisitely balanced landscape design, one finds a sudden drop-off at the end of the final terrace, where hidden fountains play at the edge of a picturesque mile-long canal that traverses the property.

Small pleasures are scattered inside the house as well, where the decorator Le Brun, founding director of the French Royal Academy of Painting and Sculpture, arranged for carved, painted and woven depictions of squirrels—Fouquet's family emblem—to appear in a multitude of unexpected locations. While Hercules and Apollo perform superhuman feats in Le Brun's majestic ceiling paintings, bushy-tailed squirrels peer out from the background or pose in secondary panels, including an oblong cartouche in the Salon des Muses emblazoned with Fouquet's motto, "Quo non ascendet?"—what heights will he not scale?

If that phrase sounds like hubris to you, your opinion was shared by Louis XIV, who attended a housewarming party at Vaux on the night of Aug. 17, 1661. As Fouquet's guests celebrated amid fireworks, orchestral music and the premiere of a play by Molière, the king surely admired the glorious château. Louis even found a lavish guest bedroom designed expressly for his royal self—yet this room, too, abounded with Fouquet's painted squirrels. In the presence of so many posturing rodents, his highness apparently began to smell a rat, and a scant three weeks after the party, Fouquet was taken into custody by Lt. Charles d'Artagnan of the king's musketeers on charges of embezzling state funds. How else, Louis reasoned, could Fouquet have bankrolled the wonders of Vaux?

Fouquet was condemned to life in prison—locked up alongside Eustache Dauger, aka the Man in the Iron Mask, in the alpine town of Pignerol—and never returned to Vaux. The king, meanwhile, knew talent when he saw it and promptly hired Le Vau, Le Nôtre and Le Brun to re-create the achievements of Vaux on a larger scale in the town of Versailles, where a modest hunting lodge was soon to be transformed into an architectural ode to Louis's grandeur. For good measure, Louis arranged to have most of the furniture, tapestries and sculpture removed from Vaux and brought to the new royal château. Even Fouquet's impressive collection of exotic trees would eventually be replanted in the gardens of Versailles. As Mel Brooks remarked, in a somewhat different context, it's good to be the king.

And yet, for all its magnificence, Versailles could never surpass Vaux's jewel-like perfection of form. A personal residence, Vaux was designed on a human scale, and although the house celebrates its owner, it is equally devoted to seducing guests. Versailles, in contrast, was meant to serve a state function—housing the French court—and its overwhelming scale was intended to convey the monarchy's seemingly limitless power, an effect essentially incompatible with domestic intimacy.

That such a deeply personal place as Vaux is today open to the public is a treat made necessary, in part, by the tremendous expense of maintaining the property. Unlike the Bond villain Hugo Drax, Vaux's real-life owner, the comte de Vogüé, is not a madman bent on world domination, and he does not possess unlimited resources. Occasional film shoots help defray costs, as do entry fees paid by the thousands of visitors who come each year to see this indisputable masterpiece of residential architecture, a home so beautiful that it inspired the envy of a king.
—Mr. Lopez is editor-at-large of Art & Antiques

Wednesday, October 19, 2011

W Hotel New Orleans- NASTY

 WORST EXPERIENCE EVER
The shower did not drain properly.
The walls are paper thin.
Did not want to touch anything.
Shower got stuck full on hot.
Bed not that comfortable.

We were traveling in a group of 14, thought it would be rude to abandon them for the Windsor Court. 


Wednesday, October 12, 2011

Spoonfed Grill


Next time you are in Birmingham, Alabama....
Thank You Michael Brandon and Crew!
Todays lunch was a honey orange chicken roll-up with candied almonds and lots of other GREAT stuff! The potatoes were delicious and cooked perfectly, CANDY!
Can't wait to see what's for lunch tommorrow.

Tuesday, October 4, 2011

Bad Financial News Keeps Pouring In: 14 Facts That Just Might Scare The Living Daylights Out Of You

Will the bad financial news ever stop?  A lot of people in the financial world were hoping for a much better fourth quarter after an absolutely disastrous third quarter.  Well, if Monday was any indication, October could end up being a really rough month for global financial markets.  So much bad financial news keeps pouring in that it really is a challenge to try to keep track of it all.  Greece seems to get closer to defaulting on their debts with each passing day, and it appears that Germany is not going to contribute any more bailout money beyond what they have already committed to.  Major banks on both sides of the Atlantic are on the verge of collapse, and investors all over the world are afraid that we may have another "Lehman Brothers moment" soon.  Shares of American Airlines dropped a staggering 33 percent on Monday as rumors that they will soon be entering bankruptcy swirled.  Yes, things certainly are getting interesting.  Back in 2008, the governments of the western world saved the financial system with gigantic bailouts that were absolutely unprecedented.  If the financial system crashes again at some point in the coming weeks or months, will the political will for more bank bailouts be there?  If not, what is going to happen to the banking system?
On both sides of the Atlantic, the big banks are highly leveraged, they have taken on a ton of risk and they are very deeply exposed to derivatives.  It is as if virtually nobody learned any lessons during the financial crisis of 2008.  Once again we are facing a situation where if a couple of financial dominoes fall it could send dozens of others tumbling to the ground.
Some very significant things happened on Monday.  But the media has gotten so used to reporting on tremendous financial instability that Monday's events mostly got brushed to the side.  Instead, Amanda Knox captured most of the headlines.
But the reality is that some really, really monumental stuff has been going down.
The following are 14 facts that just might scare the living daylights out of you....
#1 On Monday, the Dow was down 258 points.  Lately it seems as though the Dow has been going up or down by several hundred points almost every single day, and that much volatility is not a good sign for the health of the financial system.
#2 Shares of Wall Street banking giant Morgan Stanley fell by another 8 percent on Monday.  Overall, shares of Morgan Stanley have declined by more than 50 percent since February.
#3 Bank of America stock dropped down to $5.53 a share on Monday.  Just a few years ago, it was trading for more than $50 a share.
#4 There are reports that Goldman Sachs may actually show a loss for the third quarter of 2011 and that yearly bonuses for employees may be slashed to next to nothing.  Yes, not too many people are going to have sympathy for Goldman Sachs, but this just shows how bad things are getting out there for the big Wall Street banks.
#5 Normally Goldman Sachs is quite upbeat, but lately they have been coming out with some really frightening reports.  For example, a new report from Goldman Sachs declares that there is a 40 percent chance that we are entering a "Great Stagnation".
#6 Shares of European banking giant Dexia plunged by about 10 percent on Monday on rumors that it will soon need a significant bailout.  The stocks of major banks all across Europe have been getting absolutely hammered for weeks.
#7 Shares of American Airlines fell by 33 percent on Monday on rumors that the airline is about to enter bankruptcy.  Amazingly, trading in the stock was stopped 7 different times on Monday.
#8 It is being reported that approximately 240 pilots for American Airlines have retired in the last two months alone.  All of those pilots are retiring so that they can shield their pensions from the upcoming bankruptcy filing.
#9 Nearly the entire airline industry got hit really hard on Monday.  Shares of United Continental, U.S. Airways and Delta were all down more than 10 percent.
#10 Overall, U.S. stocks fell by 14 percent during the third quarter of 2011, and now the fourth quarter is off to a very rocky start.
#11 The incoming head of the European Central Bank, Mario Draghi, has publicly admitted that major European banks are having "funding problems".  Just like back in 2008, we are rapidly heading for a giant "credit crunch".
#12 A shocking new Bloomberg survey has found that approximately one out of every three international investors expects a "global economic meltdown" within the next 12 months, and 70 percent of them believe that the global economy is "deteriorating".  Perhaps they have been reading The Economic Collapse Blog too much.
#13 Financial markets in Europe were rocked on Monday when it was revealed that Greece is not going to hit the deficit reduction targets set for it either this year or next year despite all of the severe austerity measures that have already been implemented.  Needless to say, a lot of financial authorities in Europe were very displeased by this news.
#14 German Finance Minister Wolfgang Schaeuble is publicly declaring that Germany will not contribute any more money to the European bailout fund.
The truth is that the political will for more bailouts has totally dried up in Germany.
The recent vote by the Bundestag to approve money for the European rescue fund should not be misinterpreted.
That vote simply approved money that was part of a deal that was agreed to over two months ago.
What is more important is what many major German politicians said after the vote.  Essentially, the overwhelming consensus is that Germany is done contributing money.  Once the money is gone from the current bailout pool (which is not anywhere close to what is really needed), there will be no more money from Germany.
That means that the era of the bailouts in Europe is drawing to a close.
In a recent editorial, Ambrose Evans-Pritchard described the situation in Germany in this manner....
The furious debate over the erosion of German fiscal sovereignty and democracy – as well as the escalating costs of the EU rescue machinery – has made it absolutely clear that the Bundestag will not prop up the ruins of monetary union for much longer.
Horst Seehofer, the leader of Bavaria’s Social Christians, said his party would go "this far, and no further".
Let that last phrase sink in.
Basically, what politicians all over Germany are saying is that Germany has now done all that it is going to do.
The implications of this are huge.
Ambrose Evans-Pritchard recognized this in his editorial.  In fact, the usually reserved journalist actually used all caps for six straight sentences and broke out some very strong language that is very uncharacteristic for him....
Repeat after me:
THERE WILL BE NO FISCAL UNION.
THERE WILL BE NO EUROBONDS.
THERE WILL BE NO DEBT POOL.
THERE WILL BE NO EU TREASURY.
THERE WILL BE NO FISCAL TRANSFERS IN PERPETUITY.
THERE WILL BE A STABILITY UNION – OR NO MONETARY UNION.
Get used to it. This is the political reality of Europe, since nothing of importance can be done without Germany. All else is wishful thinking, clutching at straws, and evasion. If this means the euro will shed some members or blow apart – as it almost certainly does – then the rest of the world must prepare for the day.
Basically, this is his way of saying that "the sky is falling" and that the financial system of Europe is doomed.
If you have followed the writing of Ambrose Evans-Pritchard for any length of time, then you know that he is one of the most respected financial journalists in the world and that he is not prone to indulge in much "doom and gloom".  For him to say what he did is very significant.
But even if there were no financial problems in Europe, the United States would probably be slipping into another recession anyway.
Right now our economy is a total mess, and all kinds of people are coming out of the woodwork and are trying to take credit for "calling" the upcoming recession.
Some of the pronouncements are so bold that you would think that some half-crazed blogger wrote them.  For example, just check out the following quote from a report recently put out by the Economic Cycle Research Institute....
"Here's what ECRI's recession call really says: If you think this is a bad economy, you haven't seen anything yet."
But do the American people really need some experts to tell them that we are going into another recession?
The American people know what is going on.
According to one recent poll, 90 percent of the American people believe that economic conditions in the United States are "poor".  According to another recent poll, 80 percent of the American people believe that we are actually in a recession right now.
So perhaps the American people are actually ahead of most of the so-called "experts".
In any event, economic conditions in the United States continue to get worse.  The average American family is having a harder and harder time getting to the end of each month.  According to a Harris Interactive survey taken near the end of last year, 77 percent of all Americans are now living paycheck to paycheck.  In 2007, the same survey found that only 43 percent of Americans were living paycheck to paycheck.
At least Barack Obama is not talking so much about an "economic recovery" these days.  When asked recently if Americans are better off today than they were four years ago, Obama said the following....
"Well, I don't think they're better off than they were four years ago."
Finally, something that we can all agree with Barack Obama about.
Sadly, things are about to get even worse.
Pay close attention to all of the bad financial news that keeps pouring in.
Just like in 2008, something really big is happening.
When the current bailout fund in Europe runs out in a few months, things could really start to unravel.
If Greece (or any other eurozone nation for that matter) defaults, it could set off a chain of financial events so catastrophic that it just might scare the living daylights out of all of us.
Let us hope for the best, but let us also prepare for the worst.
Tremendous fear and panic has gripped the financial world, and the underlying problems causing this crisis are not going to be solved any time soon.
We are about to enter unprecedented territory.
Hold on tight.