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Message: Latest From Jim Willie

What is rather worrisome is this from Willie:

STRANGE EXTREME STORIES AS WARNING WIND

Numerous stories are circulating of vast cyber bank thefts. The locations appear initially to be European. The volume is reported as EUR 2 billion so far. The authorities will not discuss it in the open. The bank glitches might be more about kiting of funds at best, or cover for internal raids of accounts at worst. The much juicier story pertains to 600 highly paid accountants on a Wall Street assignment. It is too large to be kept a secret, since it is draining the sector of its accounting staff for hire. The rumors are as thick as black clouds. They are busily attempting to determine the financial status of a large Wall Street bank loaded with a mountain of complex derivative contracts. The toxicity is openly mentioned. No secrets can be maintained. It is surely Morgan Stanley. The next Lehman Brothers event is just around the corner. One is reminded of an incident several years ago, where Ashanti Gold had to hire a battalion of financial accountant experts in order to assess the value of their crippled balance sheet overloaded by complex gold forward sale derivatives. In other words, they needed to conduct a formal study to determine if they were indeed dead. The same is happening with Morgan Stanley, dragged down by a mountain of financial derivatives. The better question is who ordered the accounting to be done, to determine if a Wall Street firm was dead? And why?

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