Terresainte

Everything you say is true, however, what we are witnessing this very day in the U.S. and I expect in Canada as well, is panic. Carney didn’t throw $4 Billion in to the pool the other day because everything is hunky dory in Canada. There are two reasons for this panic in my estimation, one is the obvious need for bail outs and the other is fear of exposure of securities fraud and other illegal activities. I suspect the cover up has reached epic proportions and that any and all attempts to cover tracks is ongoing concomitant to increasing desperation and surreptitiously unlawful market initiatives. Suddenly, a very public investigation is underway by the FBI in the U.S. with respect to securities fraud in some of the biggest financial entities in the world that are being nationalized and bailed out by Wall St. to save their hides at the expense of the taxpayer. Odd that Paulson has made no doubt about being immune to any illegal activity or review going forward.

So, today, we are told that TD for instance, even though it has $197 billion exposure to the AIG and credit derivatives markets, wants part of Washington Mutual which is on the verge of collapse. Why? We see in the Financial Post today that it TD $508 billion in “assets” and now it wants more suspect assets. Sounds nice but what is the real market to market value of those “assets”? Hopefully more than 20 cents on the dollar. What is their real capital base and what is their exposure to leveraged derivatives? TDs expected bid for some of WaMu’s murky assets is odd and suspect considering the consumer downturn in the U.S. TD would have t raise capital for such acquisitions as they simply cannot afford it, having just risked $8.5 billion on New Jersey’s Commerce Bancorp. TDs reserves will be the thinnest of all Canadian banks next quarter.

So TD appears to be on thin ice right now and going forward. They urgently need capital and profitability. Where do they get it? How much fiscal and legal risk are they willing to take? Are there juicy profits in non-transparent meddling in the shorting/naked shorting (via conduits) of the JPMs or any other equities? How would we ever know? What penalties will any such nefarious enterpise result in? Certainly, in good old Canada, there is no FBI to consider. Certainly the regulators here are mushrooms. What is the risk? If the FBI assault blows out of the water in the U.S. as it would appear (the anger displayed last night on Anderson Cooper CNN show looks ominous indeed for the culprits. Mainstream Americans are becoming extremely angry.) can we expect a delayed reaction here in Canada? Hope so. How immune are out financial institutions from “the Law”?

So, bottom line, I do not put anything past the likes of a TD or any other Canadian Bank or broker or their intermediary to be somehow involved in the capping and or/suppression of JPMs such as ECU if there is profit in it…and I believe there is and has been. I believe there is also a powerful, intricate Wall St. connection to all this which is overseen by Paulson himself. I believe there are many favors out there. We can expect a very undervalued bid on ECU by a major, in the-loop miner, in the not too distant future I assume. I could be all wrong on this, but that is my observation.