Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron’

Submitted by mark

Via The New York Post

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Fears of a broad financial contagion spread on Friday after tech lender Silicon Valley Bank set off alarm bells over liquidity concerns — sparking share losses across the banking sector worth some $52 billion on Thursday.

Peter Thiel’s venture capital firm Founders Firm advised clients to withdraw their deposits from Silicon Valley Bank — despite the fact the lender has been a mainstay for tech startups for decades, according to Bloomberg News.

Bill Ackman, the billionaire hedge fund manager, called on the US government to step in and bail out Silicon Valley Bank.

Michael Burry, the eccentric investor featured in the 2015 film “The Big Short,” warned: “It is possible today we found our Enron.”

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Honey, We Molested the Kids!

Guest Post by Ann Coulter

Honey, We Molested the Kids!

HEADLINE: Boy Scouts Files Chapter 11 Bankruptcy in the Face of Thousands of Child Abuse Allegations

The Boy Scouts of America (BSA) have long been on the left’s hate list. Any organization that has the temerity to train young men in the virtues of integrity, patriotism and self-reliance is putting itself on the fighting side of liberals!

At the 2000 Democratic National Convention, a little group of Boy Scouts took the stage as part of the opening ceremony — and were promptly booed by the delegates.

For decades, the BSA has fended off lawsuits demanding that they embrace the holy trinity of G’s: girls, gays and godless atheists. (If only it had occurred to the plaintiffs to start their own organizations! They could have given them names like “The Girl Scouts.”)

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Boy Scouts file for bankruptcy due to sex-abuse lawsuits

Via Marketwatch

Barraged by hundreds of sex-abuse lawsuits, the Boy Scouts of America filed for bankruptcy protection Tuesday in hopes of working out a potentially mammoth victim compensation plan that will allow the hallowed, 110-year-old organization to carry on.

The Chapter 11 filing in federal bankruptcy court in Wilmington, Delaware, sets in motion what could be one of the biggest, most complex bankruptcies ever seen. Scores of lawyers are seeking settlements on behalf of several thousand men who say they were molested as scouts by scoutmasters or other leaders decades ago but are only now eligible to sue because of recent changes in their states’ statute-of-limitations laws.

By going to bankruptcy court, the Scouts can put those lawsuits on hold for now. But ultimately they could be forced to sell off some of their vast property holdings, including campgrounds and hiking trails, to raise money for a compensation trust fund that could surpass a billion dollars.

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2020 – YEAR OF LIVING DANGEROUSLY

“A shocking crime was committed on the unscrupulous initiative of few individuals, with the blessing of more, and amid the passive acquiescence of all.”

Tacitus, Publius Cornelius

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The shocking crime being committed during this century under the unscrupulous initiative of a few evil men is ongoing and no longer hidden from those willing to open their eyes and see the truth. As conspiracy theorists have proven to be right through the sacrifice of Snowden, Assange, and other patriots for truth, the Deep State psychopaths have double downed and are blatantly flaunting their power and control over the levers of government, finance and media.

Never in the history of mankind have such devious, unscrupulous, arrogant, narcissistic and downright evil men seized hegemony over global finance, trade and politics. A minority of billionaire oligarchs and their highly compensated apparatchiks, ingrained in government bureaucracies, surveillance agencies and media outlets refuse to relinquish their dominance and would rather burn the world to the ground than lose their ill-gotten riches, un-Constitutional power and unlawful control.

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BANKRUPTCY!!!!!

  • Households used the debt to buy new $35,000 SUVs, new 5,000 sq ft $500,000 McMansions, on student loans to get degrees in Transgender Studies and on credit cards to buy the latest iGadget.
  • Corporations used the debt to buy back stock at all-time high prices and pay their executives huge bonuses for coming up with the plan to buy back the stock and make it go higher.
  • Governments used the debt to make people think their economies were growing when they were really just financing Wall Street and the Military Industrial Complex at 0% interest rates.

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Bankrupt Boy Scouts

Guest Post by Eric Peters

The Boy Scouts of America is – apparently – about to file for bankruptcy. This makes me happy, as a former Scout and an Eagle Scout.

Because it’s not Boy Scouts anymore. It’s just Scouts – to reflect the new inclusiveness. Girls can be Scouts now, too – though this makes boys not want to be for the same reason that girls would probably skip Girl Scouts if boys forced themselves into the ranks, insisted the organization accommodate itself to them.

But boys never do that. It’s always the girls – who become women – who can’t abide boys (and men) having anything that’s just for boys (and men).

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“Their Wealth Has Vanished”: Baby Boomers File For Bankruptcy In Droves

Via ZeroHedge

An alarming number of older Americans are being forced into bankruptcy, as the rate of people 65 and older who have filed has never been higher – at three times what it was in 1991, while the rate of bankruptcies among Americans age 65 and older has more than doubled, according to a new study by the The Bankruptcy Project.

Older Americans are increasingly likely to file consumer bankruptcy, and their representation among those in bankruptcy has never been higher. Using data from the Consumer Bankruptcy Project, we find more than a two-fold increase in the rate at which older Americans (age 65 and over) file for bankruptcy and an almost five-fold increase in the percentage of older persons in the U.S. bankruptcy system. The magnitude of growth in older Americans in bankruptcy is so large that the broader trend of an aging U.S. population can explain only a small portion of the effect.

The median senior filing bankruptcy enters the system $17,390 in debt, vs. an average net worth of $250,000 for their non-bankrupt peers.

According to the study, a three-decade shift of financial risk from government and employers to individuals is at fault, as aging Americans are dealing with longer waits for full Social Security benefits, 401(k) plans replacing employer-provided pensions and more out-of-pocket spending on items such as health care.

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How Puerto Rico’s Collapse Could Hurt Your Savings… And What to Do About It

From Birch Gold Group

After struggling for years, Puerto Rico is filing for bankruptcy protection — triggering what would be the largest municipal debt restructuring in U.S. history.

For years, Wall Street has been buying up Puerto Rican bonds like hotcakes, even as the territory has shown serious signs of economic instability. Now, with Puerto Rico filing for bankruptcy protection, all those funds (and the underlying investors and average Americans tied to them) are likely to suffer serious losses.

But how did it come to this?

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FAT LADY SINGING FOR SEARS

Who could have predicted this? What a shocker? This is another dead canary in the coal mine. Sears/Kmart is the anchor for hundreds of dying malls across the country. The extend and pretend on developer loans for these malls is over. No rent = no debt & principal payments = developer bankruptcies. REITs have been crashing as the smart money tries to escape the coming calamity. More bank losses, real estate developer bankruptcies, and tens of thousands in lost jobs. Don’t worry – all is well.

The United States of America also has a going concern problem, but that is a few years off. Just don’t think about it. It’s only maff.

Sears Plummets After Citing ‘Substantial Doubt’ About Future

Sears Holdings Corp. suffered its worst stock decline in six weeks after acknowledging “substantial doubt” about its future, raising fresh concerns about whether a company that was once the world’s largest retailer can survive.

Sears added so-called going-concern language to its latest annual report filing, suggesting that weak earnings have cast a pall on its ability to keep operating. The 131-year-old department-store chain, which has lost more than $10 billion in recent years, was cited last year by Fitch Ratings as a company at high risk of defaulting.

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Malls Owners Rush For The Exits As Mall-Backed CMBS Defaults Soar

Tyler Durden's picture

Last week we wrote about the epic collapse of the Galleria Mall at Pittsburgh Mills which sold for $100 after once being appraised for $190 million shortly after being opened in 2005 (see “Pittsburgh Mall Once Worth $190 Million Sells For $100“).  Unfortunately for mall owners, while the Pittsburgh Mills Galleria is an extreme example, crashing mall valuations are hardly an anomaly these days.  In fact, just a few weeks ago Commercial Real Estate Direct wrote about the Foothills Mall in Tuscon, Arizona which was valued at $115mm in 2006 and backs a $75mm CMBS loan but recently appraised for just $18mm…or just a slight 75% loss for lenders.

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Blatant Union Greed:Chicago Teachers Set Strike Date Oct 11

Submitted by Michael Shedlock via MishTalk.com,

Chicago teachers have a 13% raise (over four years) offer on the table, but that is not enough. They set a strike date of October 11 because the city wants the union to contribute more than 2% for their underfunded pensions, among the worst funded pensions in the nation.

The Chicago public school system is bankrupt. Its bonds are deep in junk status.

If mayor Rahm Emanuel had any brains, he would be begging Governor Bruce Rauner and House Speaker Michael Madigan for legislation that would allow municipalities and taxing bodies the right to declare bankruptcy.

There are two words that describe the current state of affairs: Greed and Corruption.

What follows is a guest post courtesy of Union Watch.

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It’s Time to Turn Out the Lights in Illinois

If decreasing your long-term pension return assumption from 7.5% to 7.0% creates a financial crisis, imagine what happens when their actual returns are 1%.

Guest Post by Martin Armstrong

Illinois Road Tax

The roads in Illinois are in decay. This may be the first state to go bankrupt. The question is not if, but when. State unions are so greedy that they are destroying the very state. This is exactly how Rome fell — government employees against the people.

Seven states have constitutional provisions that state employee pensions must come BEFORE everything, including debt payments. Since the legislature in New Jersey was Democrat, they fought Governor Christie on pension reform. Their solution? On the ballot in November, there will be a provision to amend the state Constitution to put employee pensions before everything else. The people are generally kept ignorant of what that means to property taxes and the future of the state. Therefore, the average person will say, “Sure, I should get my pension, so they should also.”

Turn out Lights

Illinois should declare bankruptcy. It is simply inevitable. There is absolutely no hope for Illinois whatsoever. Every year they will have to pay more and more. If the state who manages the pension money loses, well, the taxpayers have to cover those losses as well. The governor tried to stop the downgrade of expectations for earnings in the pension fund from 7.5% to 7%, which means they have to raise taxes and/or cut service by almost a half-billion.

It’s time to just turnout the lights in Illinois. Welcome to the Sovereign Debt Crisis. This is the contagion you will finally start to hear about, but only after the elections. Why spoil the party?

IT’S NOT THE BREXIT STUPID

Just over a week ago the world was coming unglued, as enough British citizens grew a pair and spit in the face of the EU establishment and global elite by voting to exit the EU. The fear mongering by central bankers and their puppet political hacks failed to deter people who have become sick and tired of being abused and pillaged by bureaucrats working on behalf of bankers and billionaires.

Stock markets around the world plummeted on Thursday and Friday. The world braced for another Black Monday. The phone lines were buzzing between central bankers around the world over the weekend as their banker constituents demanded relief. If one thing has been proven over the last seven years, its a coordinated effort between central bankers and Wall Street banks to rig the stock market higher can work over a short time period.

The titans of finance were able to once again confound short-sellers and the prophets of doom with a 5% surge from the Friday lows over the next week. It was surely a coincidence the Fed declared all Wall Street banks, safe, sound, and capable of buying back their stocks to the tune of billions early in the week.

These insolvent zombies were now free to borrow billions to buy back their overvalued stocks, destroying shareholder value, while boosting executive compensation. Poor Jamie Dimon is struggling to get by on his $27 million per year. The Wall Street banks obliged by immediately announcing multi-billion dollar buyback schemes to capitalize on the short-term trading mentality of the 30 year old MBA trading geniuses who bought the news without worrying about the actual value of the stocks they were buying.

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J.C. PENNEY STILL ON BANKRUPTCY PATH

I find J.C. Penney to be a sick joke. The executives of this company think they can put out positive press releases and have their financial statements not properly show in the earnings press release to cover up the fact their financial results are deteriorating – not improving. CNBC will dutifully report the corporate lies. Checkout the press release where, for some reason, the financial results don’t format. Must be a glitch. Right?

http://www.marketwatch.com/story/jcpenney-reports-a-63-percent-increase-in-ebitda-to-176-million-and-reaffirms-full-year-ebitda-guidance-of-1-billion-2016-05-13

The press release heading makes you think business is booming. Whenever a corporation crows about EBITDA, you know they are covering up their true results. Of course, a company with $4.7 billion of debt wouldn’t want to include interest expense in the results they announce.

These rocket scientists owe their ongoing existence to Bernanke and Yellen. A company with this much debt and billions in losses over the last five years should be paying 20% interest on their debt. Instead they can finance themselves at 8% rates. This bloated pig should have gone belly up by now. That’s how creative destruction works in a free market. Their existence as a dead retailer walking brings down the results of other retailers, creating the current zombie retail environment. These retailers just plod along, losing money, buying back stock, and never dying. The Fed has created this Walking Dead Economy with their warped QE and ZIRP “solutions”.

If you go to JC Penney’s website, you can actually see their income statement, balance sheet and cash flow statement.

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