This is an off balance sheet asset that will in no way make up for the on BS assets represented by those securities, but will enable special pleading behind the scenes, to keep Euro institutions inc banks, ins cos afloat. Germany is not going to like the inflation, but as it is now in zero growth mode, it really has no choice. Who is the Bismark behind this scheme?

"The worst corruption in the world is on Wall Street. People talk about the corruption in Latin America or Africa or China, but it is nothing compared to what is going on. The biggest scandal in human history without any question at all; the whole thing is fraud, everything they do is fraud."

http://neweconomicperspectives.blogspot.com/2011/08/interview-with-randy-wray-regarding.html

In the real world, there are clear dividing lines marking people’s property. Hence when rioting occurs in the street we can all see clearly how and when someone crosses the line and steals / loots.

But if banking has developed a sloppy sense of demarcation between it’s own money and it’s clients’ then how can one be confident that there hasn’t been a few internal forays into someone else’s assets.

There are some informative comments by posters on the Zerohedge site. One is anecdotal "duh, call the order to the floor and follow up with the tickets with account numbers later. We used to do it all the time.", whilst others provide statistical methods for ascertaining the credibility of this claim, e.g. "look at profitable trading days for the banks at 100% of the time (suspicious by itself), and compare with the stop-outs and failures associated with 'recommendations' by the firms for their clients."

It’s easy to see how Looting can occur within a bank when there’s no clear dividing line between the assets and trades it makes and those it conducts on behalf of clients.

If that’s not upscale looting my friends, then by golly I’m a dreamed-up hologram of Nancy Pelosi.

Nice spot. I wouldn’t underestimate how profound and potentially pernicious this sort of conduct is.

It is not just about the risk to ownership of assets during insolvency, but the ability to game the system.

Here’s a post of mine from June last year, which somewhat curiously was banned by the BBC moderators:

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So JP Morgan has been caught with its hands in the till (so to speak):

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7800471/UK-hits-JP-Morgan-with-record-33.3m-fine.html

Will this get a mention on Newsnight?

"JP Morgan has been hit with the largest fine ever levied by the UK market regulator for risking its clients' money by failing to put the balances into accounts separate from the US bank’s own funds."

They admit to doing this from 2002 to 2009. Could this be an admission of the accusation made by Max Keiser a few weeks back:

http://www.zerohedge.com/article/max-keiser-big-banks-allocate-losing-trades-clients-keep-winning-trades-themselves

"Max Keiser – journalist, former Wall Street broker and options trader – claims that the big banks retroactively allocate losing trades to their clients, and keep the winning trades for their own proprietary trading desks"

Very easy to do if you fail to keep accounts separate. Could this sort of behaviour explain why many banks consistently have perfect trading days every day (on their own account) whilst client funds risk taking the losses?

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Thanks to proprietary trading, the game is probably rigged in the “market making” banks’ favour.

If properly investigated by regulators this conduct may well have unveiled systemic fraud.

But of course, fraud never happens in finance!

http://www.zerohedge.com/news/guest-post-%E2%80%9C-sequel%E2%80%9D-how-2011-repeat-2008%E2%80%94only-bigger-longer-and-uncut-bailouts

PwC is now expected to face a heavy fine over its role in the client asset scandal which could have wrought unnecessary mayhem had the bank collapsed at the height of the financial crisis in October 2008. At that point, JP Morgan's futures and options desk held $23bn (£14bn) of client money, largely belonging to hedge funds, which was not segregated from the bank's own funds."

More here http://www.guardian.co.uk/business/2011/aug/15/jp-morgan-pricewaterhousecoopers-clent-assets .

http://www.telegraph.co.uk/finance/financialcrisis/8703147/Germanys-Angela-Merkel-faces-eurobond-mutiny.html

In fact it is they who are causing the doom and disaster – time to call their bluff.

Time for a re-appraisal of our value as individuals and the values we want as benchmarks for our societies, communities and nations.

Any system that is fundamentally corrupted and flawed as the present monetary system is not worth the time and effort needed to sort it out. Let those who have used, exploited and manipulated it keep all their ill-gotten gains but confine their trading amongst themselves with no licence to trade in our markets.

Elitism feeds off the envy and awe of the spectator – without these reactions their avarice looks and will eventually feel ludicrous.

If we do that it wont be long before hindsight has us wondering why we put up with the idiocy and the pain it caused for so long.

http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html?_r=4

Osborne? Are you listening, mate?

Surprise surprise!
BCA Research Finds "QE Is Good For The Rich, Bad For The Poor"