Could JP Morgan be This Year's Bear Stearns or Merrill Lynch? Looks Extremely Possible!

I just read an article over at Teri Buhl's webpage that is a MUST-READ! Could JP Morgan be heading towards another downgrading, or, even worse, bankruptcy? JP Morgan seems to have been caught in deliberate fraud of a massive scale... Even the always useless SEC can't ignore these cases!

The article is long but completely and totally devastating in its implications as to what's going on for the future of JP Morgan.... The article is entitled: SEC Tells JP Morgan Enforcement Action Coming over Bear’s Mortgage Backed Securities Violations 


Here's just a small snippet:

How many billions in damages JP Morgan will have to pay out is not yet determined but inside their Mortgage-Backed Securities and Repurchase Litigation note on the 10-Q the bank tells us “There are currently pending and tolled investor and monoline claims involving approximately $120 billion of such securities.”

WOW that means investors think there was a heck of a lot of very bad mortgage securities that were packaged and sold and they want their money back along with some fines and are willing to spend a few million to pay expensive lawyers to sue for it. When I first reported on the Ambac case and went on RT’s The Keiser Report to explain what kind of financial trouble JPM could be in the damages in the monoline suits against Bear were only around $1.2bn. I told Max Keiser if fraud claims survived the suit that means punitive damages get lobbed on and who knows many billions JPM will have to pay out because allegedly emails showed Bear mortgage traders stole billions from their own damn clients. I threw out a number $10bn, that JPM could be looking to pay. Now according to JPM’s latest SEC filings there are now “seven pending actions commenced by bond insurers that guaranteed payments of principal and interest on approximately $5 billion of certain classes of 21 different MBS offerings.”

Go and read the rest at Teri Buhl... I read it twice because this could be the thing that collapses the entire house of cards. 


It's not even June and the summer of 2012 is quickly heating up! These events are going to seriously affect Japan and the world economy. 


Stay tuned!

Silver Price Recovery Begins Tomorrow May 9, 2011

Just had a friend in China tell me on the phone that the rumor is that central bank of the Chinese Republic (PRC) is going to start buying heavily into physical silver - and demanding delivery - starting first thing tomorrow am. This rumor is going around financial circles in China, Shanghai and Hong Kong and it is also rumored that this will be a process that starts slowly beginning tomorrow May 9, 2011.

Parabolic rises are traditionally followed by a price drop reflecting the rise. But, traditionally we didn't have massive USD debt, money printing, QE2 (QE3 will be announced before summer) and, the big one; we didn't have a publicly announced policy by the People's Republic of China to buy precious metals.

The resurgence of silver's price could be tomorrow.... At least that's what my little birdie tells me. 

Could it be that I am being manipulated to spread disinformation? I doubt it. There are only 5,000 readers a day to this blog.... You'd think they'd go somewhere else if they wanted to spread hype.... Or maybe they are.

My personal opinion is that it is now the time to get back into the pool and start buying. If the price continues to drop, dollar cost average your price out. Silver is not going too much lower and the fundamentals (since 2008) haven't changed. 

You in the game or not?