Brainstorming Monday - part 1

1. All expected measures came up by the EU, ECB,IMF and FED, the size of the fund was even a bit bigger with a 750 bil EUR which is almost 1 tril DOLLAR. The expected bounces were achieved as well but America needs to restore its role as prime capital market which has not been done yet. The SEC is behind the curve as always only that it becomes very clear to anyone these days and that is rather a disgrace in light of the porn watching habits of some executives.
The ECB has also lost credibility as they claimed on Thursday that the QE program was not even discussed - I share their point in principal as it it again an undeserved bailout of banks - but has now agreed to start the buying program. I had written we would rally Monday and Tuesday we have to see how far this short covering rally goes as the global problems have not been solved and the technical picture still points strongly to more downside.

excerpt

World Races to Avert Crisis in Europe

$955 Billion Bailout Plan for Euro Members Is Crafted; ECB Intervenes in Bond Markets; Fed Reopens a Rescue Program

BRUSSELS—The European Union agreed on an audacious €750 billion ($955 billion) bailout plan in an effort to stanch a burgeoning sovereign debt crisis that began in Greece but now threatens the stability of financial markets world-wide.

The money would be available to rescue euro-zone economies that get into financial troubles. The plan would consist of €440 billion of loans from euro-zone governments, €60 billion from an EU emergency fund, and €250 billion from the International Monetary Fund.

Immediately after the announcement, the European Central Bank said it is ready to buy euro-zone government and private bonds "to ensure depth and liquidity" in markets, and the U.S. Federal Reserve announced it would reopen swap lines with other central banks to make sure they had ample access to dollars.

Asian stock markets opened higher on Monday, boosted by news of the EU package.

The giant bailout package reflects the gravity of the crisis gripping Europe and growing fears that the situation could grow so dire as to hamper the fragile rebound in the global economy. It casts aside long-held notions that each EU nation should manage its own finances, opening an era in which members of the common currency take on unprecedented responsibilities for each others' fiscal troubles.

In an indication of the world-wide concern, the White House said President Barack Obama on Sunday spoke with French President Nicolas Sarkozy and German Chancellor Angela Merkel to urge "resolute action to build confidence in the markets."

2. JP Morgan is now also declared as target with a criminal and civil investigation ongoing in their silver manipulation- they do manipulate much more markets and were the first to benefit form the economic crisis they helped to create as they were the ones to bring AIG into the CDS game and literally steal Bear Stearns and unload the toxic assets on the taxpayers. Dimon is a posterboy who is part of the cabal within the Rothschild-Rockefeller gang.

Civil And Criminal Probes Launched Against JP Morgan For Silver Market Manipulation

Yes, it is really happening. After years and years and years of market manipulation, JPMorgan is about to realize there is only so far you can push your luck against the criminal envelope. In other news, when silver doubles shortly, Andrew Maguire is about to become a patron saint to generations of long-suffering gold and silver "bugs" the world throughout.

From Michael Gray of the NY Post.

Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.

The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.

The Commodities Futures Trade Commission is looking into civil charges, and the Department of Justice's Antitrust Division is handling the criminal probe, according to sources, who did not wish to be identified due to the sensitive nature of the information.

The probes are far-ranging, with federal officials looking into JPMorgan's precious metals trades on the London Bullion Market Association's (LBMA) exchange, which is a physical delivery market, and the New York Mercantile Exchange (Nymex) for future paper derivative trades.

JPMorgan increased its silver derivative holdings by $6.76 billion, or about 220 million ounces, during the last three months of 2009, according to the Office of Comptroller of the Currency.

Regulators are pulling trading tickets on JPMorgan's precious metals moves on all the exchanges as part of the probe, sources tell The Post.

JPMorgan has not been charged with any wrongdoing.

The DOJ and CFTC each declined to comment, as did JPMorgan.