Gone In Sixty Nanoseconds & Other “Knight-Time” Stories w/David Greenberg!

via: CapitalAccount
August 6, 2012

Welcome to Capital Account. Knight Capital, the market maker that lost a reported 440 million dollars off a “technical glitch,” will get a $400 million lifeline from investors to stay afloat. Today’s version of ‘Gone in 60 Seconds’ is more like ‘Gone in 60 Nanoseconds’ with the use of high frequency trading. So what purpose does this speed serve? Is there anything keeping a Knight Capital disaster from happening again, and what are the implications for the broader economy and the financial markets? Likewise, is there any benefit that high-frequency trading brings to the market as a whole, or is it just a race to the bottom for the retail investor? We ask commodities trading veteran and former NYMEX board member David Greenberg.
Also, we look at where regulators stand on high frequency trading as a new study questions the true risk of the SEC revolving door. Is the financial incentive simply not there for regulators, since anyone who actually understands the industry would rather work there for more money than go to a government agency? We ask David Greenberg, President of Greenberg Capital, if regulators are prepared to deal with high frequency trading.

Capital Account – Retired Fraudster on the ABC’s of Financial Fraud and why it’s Easier than Ever!

via: CapitalAccount
August 2, 2012

Welcome to Capital Account. The dark Knight rises as dark pools of liquidity traded by robot computer algorithms went awry and threatened Knight Capital’s stability, costing the firm $440 million. This is just one more issue with broker dealers and markets, and one more blow to confidence in the US financial system. We hear from a former fraudster, Sam Antar, and the Commodity Customer Coalition Founders, James Koutoulas and John Roe, about how to restore faith in a broken system.

Remember ‘Crazy Eddie,’ home to the one of the largest securities frauds uncovered during the 1980s? The criminal CFO, Sam Antar, who helped mastermind the scheme, said he did it for fun and profit, and if he had not been caught, he would still be doing it today. What does this mean for the bigger picture about what is happening on Wall Street? The bad and arguably criminal actions at firms that helped cause the financial crisis have gone largely unpunished. We talk to the former Crazy Eddie CFO, Sam Antar, about it.

Plus the ECB disappoints today as Mario Draghi fails to deliver a “whatever it takes” plan. Is this back to crisis as usual and how is the private sector dealing? Well one company seems to hope sex not only sells but also shames people back into Spain’s ailing real estate market.

Peter Tchir on the ECB’s Printers, LIBOR Litigation and the German Tipping Point!

via: CapitalAccount
August 1, 2012

Welcome to Capital Account. The Federal Reserve released its interest rate decision today: extremely low rates until late 2014. Also, tomorrow, the ECB council meets about possible bond purchases and how to react to the financial turmoil in Europe. We talk to Peter Tchir, founder of TF Market Advisors, about what to expect from the central banks.

Also, the manufacturing scenario in Europe appears grim. Eurozone factory activity in July fell at its steepest rate in more than three years, according to Markit Economics’ Purchasing Managers Index. German manufacturers suffered the largest fall in new export orders of any Euro-zone country. Could this mean trouble in Europe’s economic powerhouse? We will talk to Peter Tchir about how this fits into the crisis calculus.

And when Olympians from the US get the gold medal, they will have to cough up almost $9,000 to settle with the IRS! Chances are their competitors are not in the same boat, says Americans for Tax Reform. Lauren and Demetri give you their take in today’s “Loose Change!”

Capital Account – Doug Casey on Crisis Investing, Political Risk, and a Benign Anarchy!

via: CapitalAccount
July 27, 2012

Welcome to Capital Account. The US economy slowed in the second quarter: GDP rose at 1.5% on an annualized basis according to the Commerce Department. The Wall Street Journal points out that this current economic ‘recovery’ is the second weakest rebound post World War II. Cue speculation about the Federal Reserve taking more action, or talk of how government GDP numbers aren’t reliable anyway. How does this so-called recovery lag compared to others, and when did things really start going downhill economically in the US. Was it after a peak of good times for America in the late 50s to mid 60s, with the 1959 cadillac a relic of a bygone era? We are not just talking about its iconic tail fins, but of the decent standard of living for Americans that it represents — one that was NOT built on unsustainable debt supplanting stagnant wages. Or was what sealed America’s fate the 1971 closing of the gold window by Richard Nixon? We will talk to Doug Casey, bestselling author and founder and publisher of Casey Research, for his thoughts.
Also, Spain has, for the first time, conceded it may need a full EU IMF bailout, according to Reuters. Meanwhile, Spanish unemployment has hit the highest level since its transition to democracy post-Franco. We will take stock of the Eurozone crisis with the man who literally wrote the book on Crisis Investing, Doug Casey.

Capital Account – From Natural Resources to Currency Wars w/Rick Rule & Jim Rickards

via: CapitalAccount
July 26, 2012

Welcome to Capital Account. Today is a special episode, because not only do we have commodities and resource expert Rick Rule on the show, but fan favorite Jim Rickards is guest co-hosting with our own Lauren Lyster!

In today’s news, European Central Bank President Mario Draghi said policymakers will do what is needed to save the Euro. This comment was enough to spur a bout of market euphoria. But how do you invest around what a policymaker may or may not say? How do you hedge against volatility created by governments, central banks, and their central planners? We will talk to Rick Rule, Founder of Sprott Global Resource Investments and a leader in natural resource investing.

Also, former Citigroup CEO Sanford Weill, who helped build the behemoth Citigroup is today, now advocates for breaking up the big banks. We talk to our guest co-host Jim Rickards, Senior Managing Director at Tangent Capital Partners, about the significance and motivation behind Sanford Weill’s statements.

Fidelity, Black Rock, and Vanguard, firms that collectively manage more than $7 trillion, are weighing legal action against the banks investigated for rigging Libor, according to Bloomberg. Could this mean more class action lawsuits are on the way?

 

Capital Account – The Future of Farmland in a World of Financial Fraud and Safe Haven Bubbles!

via: CapitalAccount
July 25, 2012

Welcome to Capital Account. The Federal Reserve is moving closer to action…again. This, according to the Wall Street Journal, which reports that recent disappointing economic news has turned conversations inside the central bank towards the question of how and when to act. But is the Fed the only one worried about “how and when to act?” What should the average investor do in the case of inflation, price manipulation and financial fraud? We talk to Brad Farquhar, Co-Founder & Vice-President of Assiniboia Capital, about farmland as possible hedge against the fat-tail apocalypse…

And Timothy Geithner was on Capitol Hill today answering questions about his reaction to finding out about the manipulation of Libor in 2008. Though he alerted UK authorities, he told Congress ultimately, he thought it was the responsibility of UK regulators to address Libor manipulation issues. Meanwhile, Bank of England officials reportedly raised concerns internally about the London Whale in 2010…after all it was the responsibility of US regulators to handle JP Morgan. Back and forth we go. Are you as sick of this as we are, but not sure what to do about it or who to react in order to protect yourself? We will talk about farmland as a way out with Brad Farquhar, manager of the largest farmland fund in Canada.

And with Agora’s 2012 “Innovate or Die Conference” in the middle of its annual retreat to Vancouver, our producer Demetri Kofinas gives us an update from the ground. He has been attending the conferences, and rubbing elbows with some of the world’s “financial first responders” as our Monday guest Eric Fry, has described them. He tells us why the investors here are “bearishly” optimistic!

Capital Account – Marc Faber on a Global Crash, the U.S. Treasury Bubble and China’s Slowdown

via: CapitalAccount
July 24, 2012

Welcome to Capital Account. Another day with record lows for the US Treasury, both the 10-year and the 2-year. Could this be the biggest bubble we have ever seen? We talk to famed investor Dr. Marc Faber, Publisher of the Gloom Boom and Doom Report. He joins us from Agora Financial’s symposium in Vancouver.

As the global economic slowdown continues, we ask Marc Faber, Author of “Tomorrow’s Gold: Asia’s Age of Discovery,” about his short-term outlook on China and what the recent low in Chinese steel futures contracts indicates about the economy.

Also, more reports have come out about the civil and criminal Libor probe. The Wall Street Journal reports more than a dozen traders from at least nine banks are under investigation for rigging interest rates. We have heard a lot about the probe, but not much about the Libor rate itself. What are the alternatives to a benchmark interest rate which is the underpinning of an estimated $550 trillion in financial products? We talk to Bob English, contributing editor for ZeroHedge and EconomicPolicyJournal.com.

Capital Account – Financial First Responders discuss whether US has become “Too Sexy to Survive”

via: CapitalAccount
July 23, 2012

Welcome to Capital Account. As stocks fall, volatility spikes, perceived safe haven yields hit record lows, potential criminal Libor charges loom, and headlines tout “Global Economy in Worst Shape Since 2009,” a large group of investors are meeting in Vancouver for the Agora Financial conference. The theme of the conference is ‘Innovate or Die: Empire at a Turning Point.’ We check in with the organizer, Eric Fry, Editor of the Daily Reckoning and Chief Investment Strategist at Agora Financial to find out why high profile investors and economic experts see such high stakes and what answers they may have. Also, with new lows for treasury yields, the US government has never borrowed this cheaply. We talk to Eric Fry about what the indebted US may learn from the extinction of the Irish Elk. With major Italian cities on the verge of collapse and residents taking to social media to demand return of the Lira, we talk to blogger extraordinaire Mike “Mish” Shedlock about what lies ahead for Europe.

Financial Checkup: LIBOR Group Settlement?

via: TheAlyonaShow
July 20, 2012

Capital Account – Charles Ferguson on the Financial Landscape after 2008′s “Inside Job”

via: CapitalAccount
July 19, 2012