Are “Dark Pools” Destined to be the Capital Markets’ Next Black Hole?

Related article:Big Traders Dive Into Dark Pools

We can almost hear that ominous “Jaws” theme music in the background and can see that huge dorsal fin as it slices threateningly through the water – knowing full well that the real terror is hidden beneath the water’s surface.

But this time around, it’s not a “Great White” that’s sparking our fears; it’s a well-capitalized and broadly based series of secret stock exchanges known as “Dark Pools of Liquidity,” “Dark Liquidity,” or just “Dark Pools.”

Most investors have never even heard the term – and are truly shocked to discover these “off-the-books” trading networks actually exist.

But to Wall Street insiders looking to anonymously move billions of dollars in stocks, bonds, and other investment instruments, dark pools are de rigueur – especially when you’re an institutional trader who doesn’t want to reveal your intentions or your actions to the “rest” of the market, until after the fact when the orders are “printed.”

And that makes these dark pools of capital highly problematic when it comes transparency: There is literally none in most pools and only limited visibility in others.

Dark Pools: From Trading Haven to Heavyweight

Dark Pools are electronic “crossing networks” that offer institutional investors many of the same benefits associated with making trades on the stock exchanges’ public limit order books – without tipping their hands to others, meaning publicly quoted prices aren’t affected. This is the capital markets’ version of a godsend – especially for traders who desire to move large blocks of shares without the public investors ever knowing.

Some examples of so-called crossing networks include Liquidnet Inc., Pipeline, the Posit unit of Investment Technology Group (ITG), or the SIGMA X unit of Goldman Sachs Group Inc. (GS).

In an era in which “secret” transactions contributed to what’s shaping up to be the largest credit crisis in history, you’d think that any mechanism that allows insiders to trade in complete secrecy and with total anonymity would be scrutinized more closely than a Roger Clemens vitamin shot. But that’s not the case with Dark Pools.

Read moreAre “Dark Pools” Destined to be the Capital Markets’ Next Black Hole?

IRAN READY TO HIT UK? The Bullshit Campaign Again!

Iran has no interest whatsoever to attack anyone, BUT Iran will defend itself.
Iran does not intend to wipe out Israel, says Ahmadinejad
Ron Paul: Iranians Tested Missiles AFTER Israel had WAR GAMES

Iran has done nothing wrong. Iran is strictly obeying international law.
An attack on Iran would be illegal, since under the Nuclear Non-Proliferation Treaty, Iran has the right to enrich uranium for peaceful purposes and that is “perfectly legal”!

Ron Paul on Iran and Energy June 26, 2008

It is Israel and the U.S. – not Iran – that are the aggressors and preparing for an attack:
Ex-weapons inspector says Iran not pursuing nukes, but U.S. will attack before ‘09
President George W Bush backs Israeli plan for strike on Iran
Ron Paul: I hear members of Congress saying “if we could only nuke Iran”
Ron Paul: Nancy Pelosi pulled Iran bill on orders of Israel
Israel hints at readiness to strike Iran
US backs Jundullah to destabilize Iran
How Israel Is creating the war on Iran
U.S. escalating covert operations against Iran: report
Senate report exposes key role of the Israel lobby in fomenting war with Iran
Top US commander briefed on IDF’s four-front strategy in potential Iran war context
US: Oil blockade constitutes an act of war
Israel Prodding U.S. To Attack Iran
Israel launches ‘Iran Command’ for war
Israel to attack Iran unless enrichment stops: minister
Oil hits new high as Israel calls strike on Iran ‘unavoidable’
Joschka Fischer: US, Israel will attack Iran
And the winner is … the Israel lobby
Bush ‘plans Iran air strike by August’
U.S. Will Attack Iran
Israel will not tolerate nuclear Iran: Olmert
Israel preparing to bomb Iran N-sites
Joint Chiefs of Staff: US prepping military options against Iran

Are “they” preparing the public, in the article below “IRAN READY TO HIT UK”, for another false flag attack like 9/11?
Loose Change Final Cut
9/11 False Flag
Former Governor Jesse Ventura warns that they might use such a false flag attack as an excuse to attack Iran:
Former Governor: “Absolutely” danger of false flag as pretext to attack Iran
And this time it is Iran who is “with the terrorists” and has the weapons of mass destruction and all of that.

Will it be easy to win this war?
America Is the Rogue Nation

And why are they doing this? Just because of oil?
Iran dumps U.S. dollars in oil transactions
Ahmadinejad to OPEC: Dump weak dollar
How Iran Has Bush Over a Barrel

No, it is not only about oil, it’s about something far worse.
Ask yourself what will happen, if Israel and/or the U.S. attack Iran?
What will such an attack cause?
If your answer would be something like:

“That can’t be!” or “They would not do that intentionally, would they?”

Then you are right on.
And then you have the reason, why they are really doing it.
If I would have told you this straightaway, you would probably have called this a conspiracy theory and you would have dismissed it. More on what is going on under World Situation (2.Politics).

July 16, 2008
By: The Infinite Unknown

IRAN READY TO HIT UK

Sunday July 13,2008
By Jason Groves
Source: Daily Express

IRAN is poised to launch terror attacks in Britain if the West presses ahead with military strikes against its nuclear facilities, intelligence experts warned last night.

As tensions in the Middle East continued to grow, they warned that the Iranian-backed terrorist group Hezbollah had already established sleeper cells in Britain and mainland Europe tasked with carrying out bloody reprisals.

Likely UK targets include nuclear power stations, military bases, Government buildings and high-profile politicians and members of the Jewish community.

Richard Kemp, former adviser on terrorism to Tony Blair, said the difficulty of attacking Western and Israeli military targets directly meant Iran was likely to use its terror network to retaliate. Hezbollah, formed in Lebanon in the 1980s, has grown to become a major force in the Middle East.

He said: “In my view Iran’s only realistic method of retaliation is through Hezbollah.

“Hezbollah undoubtedly have the capability to carry out attacks against Western targets outside the region. They have people here in the UK and they would aim to carry out attacks if they saw us as being in any way supportive of an attack on Iran’s nuclear facilities.”

Read moreIRAN READY TO HIT UK? The Bullshit Campaign Again!

Gazprom Connects to Iran


Iranian President Mahmoud Ahmadinejad with Gazprom CEO Alexey Miller in Teheran, July 13, 2008

Gazprom has signed a memorandum on cooperation in production and transportation of oil and natural gas with the National Iranian Oil Co. The Iranian company, which all other oil companies in the world refuse to work with, is promising Gazprom “a full package of projects.” The memorandum was signed by Gazprom CEO Alexey Miller, Iranian Oil Minister Gholam Hossein Nozari and NIOC managing director Seifollah Jashnsaz. Gazprom will thus have the chance to strengthen its position in the countries with the world’s second largest gas reserves (proven reserves of 28.13 trillion cu. m.).

Read moreGazprom Connects to Iran

Former Governor: “Absolutely” danger of false flag as pretext to attack Iran

Former Governor of Minnesota Jesse Ventura warns that Neo-Cons are so desperate to maintain a grip on power that they could stage a terror event in order to create a pretext for attacking Iran.

Speaking on the Alex Jones Show before last night’s announcement that he would not be running for U.S. Senate, Ventura said a conflict with Iran was all but inevitable.

“I don’t see any way of avoiding it because I think it’s gonna be Bush’s last hurrah,” said Ventura, adding that another war front would only help the Republicans and John McCain.

“We are now a first strike nation, 9/11 changed our entire foreign policy, we will now attack another country before they attack us, which we proved in Iraq,” he added.

Asked if we were in danger of seeing the Neo-Cons stage some kind of Gulf of Tonkin false flag or other terror event as a pretext for attacking Iran, Ventura responded, “Absolutely, read the last epilogue in my book, I wrote that a year ago.”

Read moreFormer Governor: “Absolutely” danger of false flag as pretext to attack Iran

Scott Ritter: Iran Shows Its Cards


Iranian President Mahmoud Ahmadinejad, far left, sits with officers during a military parade last year.

By Scott Ritter: Former chief weapons inspector for the United Nations Special Commission in Iraq

There can no longer be any doubt about the consequences of any U.S. and/or Israeli military action against Iran. Armchair warriors, pundits and blustering politicians alike have been advocating a pre-emptive military strike against Iran for the purpose of neutralizing its nuclear-related infrastructure, as well as retarding Iran’s ability to train and equip “terrorist” forces on Iranian soil before dispatching them to Iraq or parts unknown. Some, including me, have warned of the folly of such action, and now Iran itself has demonstrated why an attack would be insane.

Related articles:
President George W Bush backs Israeli plan for strike on Iran
Iran does not intend to wipe out Israel, says Ahmadinejad
Ron Paul: Iranians Tested Missiles AFTER Israel had WAR GAMES

I’ve always pointed out that no plan survives initial contact with the enemy, and furthermore one can never forget that, in war, the enemy gets to vote. On the issue of an American and/or Israeli attack on Iran, the Iranian military has demonstrated exactly how it would cast its vote. Iran recently fired off medium- and long-range missiles and rockets, in a clear demonstration of capability and intent. Shipping through the Strait of Hormuz, regional oil production capability and U.S. military concentrations, along with Israeli cities, would all be subjected to an Iranian military response if Iran was attacked.

Read moreScott Ritter: Iran Shows Its Cards

Recession-Plagued Nation Demands New Bubble To Invest In

If the situation would not be so damn serious, this would be very funny.
Maybe it’s still funny, if you “Always look on the bright side of life”.

Related video: –
How the markets really work

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WASHINGTON – A panel of top business leaders testified before Congress about the worsening recession Monday, demanding the government provide Americans with a new irresponsible and largely illusory economic bubble in which to invest.

“What America needs right now is not more talk and long-term strategy, but a concrete way to create more imaginary wealth in the very immediate future,” said Thomas Jenkins, CFO of the Boston-area Jenkins Financial Group, a bubble-based investment firm. “We are in a crisis, and that crisis demands an unviable short-term solution.”


A prominent finance expert asks Congress to help Americans rebuild their ficticious dreams.

The current economic woes, brought on by the collapse of the so-called “housing bubble,” are considered the worst to hit investors since the equally untenable dot-com bubble burst in 2001. According to investment experts, now that the option of making millions of dollars in a short time with imaginary profits from bad real-estate deals has disappeared, the need for another spontaneous make-believe source of wealth has never been more urgent.

“Perhaps the new bubble could have something to do with watching movies on cell phones,” said investment banker Greg Carlisle of the New York firm Carlisle, Shaloe & Graves. “Or, say, medicine, or shipping. Or clouds. The manner of bubble isn’t important-just as long as it creates a hugely overvalued market based on nothing more than whimsical fantasy and saddled with the potential for a long-term accrual of debts that will never be paid back, thereby unleashing a ripple effect that will take nearly a decade to correct.”

“The U.S. economy cannot survive on sound investments alone,” Carlisle added.

Read moreRecession-Plagued Nation Demands New Bubble To Invest In

Jim Rogers: Fannie Plan a `Disaster’; Goldman Says Sell

The U.S. economy is in a recession, possibly the worst since World War II, Rogers said.

“They’re ruining what has been one of the greatest economies in the world,” Rogers said. Bernanke and Paulson “are bailing out their friends on Wall Street but there are 300 million Americans that are going to have to pay for this.”

July 14 (Bloomberg) — The U.S. Treasury Department’s plan to shore up Fannie Mae and Freddie Mac is an “unmitigated disaster” and the largest U.S. mortgage lenders are “basically insolvent,” according to investor Jim Rogers.

Taxpayers will be saddled with debt if Congress approves U.S. Treasury Secretary Henry Paulson‘s request for the authority to buy unlimited stakes in and lend to Fannie Mae and Freddie Mac, Rogers said in a Bloomberg Television interview. Rogers is betting that Fannie Mae shares will keep tumbling.

Goldman Sachs Group Inc. analyst Daniel Zimmerman said the mortgage finance companies’ shares may fall another 35 percent and lowered his share-price estimate for Fannie Mae to $7 from $18 and for Freddie Mac to $5 from $17. Freddie Mac fell 64 cents, or 8.3 percent, to $7.11 in New York Stock Exchange trading, while Fannie Mae fell 52 cents, or 5.1 percent, to $9.73.

“I don’t know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,” Rogers, 65, said in an interview from Singapore. “So we’re going to bail out everybody else in the world. And it ruins the Federal Reserve’s balance sheet and it makes the dollar more vulnerable and it increases inflation.”

The chairman of Rogers Holdings, who in April 2006 correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce, also said the commodities bull market has a “long way to go” and advised buying agricultural commodities.

`Solvency Crisis’

Read moreJim Rogers: Fannie Plan a `Disaster’; Goldman Says Sell

Citigroup’s $1.1 Trillion in Mysterious Shadow Assets

July 14 (Bloomberg) — At an investor presentation in May, Citigroup Inc. Chief Executive Officer Vikram Pandit said shrinking the bank’s $2.2 trillion balance sheet, the biggest in the U.S., was a cornerstone of his turnaround plan.

Nowhere mentioned in the accompanying 66-page handout were the additional $1.1 trillion of assets that New York-based Citigroup keeps off its books: trusts to sell mortgage-backed securities, financing vehicles to issue short-term debt and collateralized debt obligations, or CDOs, to repackage bonds.

Now, as Citigroup prepares to announce second-quarter results July 18, those off-balance-sheet assets, used by U.S. banks to expand lending without tying up capital, are casting a shadow over earnings. Since last September, at least $100 billion of assets have flooded back onto Citigroup’s balance sheet, accompanied by more than $7 billion of losses.

“If you start adding up all the potential exposures, it’s a huge number,” said Sam Golden, a former ombudsman for the U.S. Office of the Comptroller of the Currency who now heads the financial-industry practice for restructuring adviser Alvarez & Marsal in Houston. “The banks will say that it was disclosed. Investors are saying, `Yeah, but it was cryptic. We really didn’t know what you were telling us.”’

U.S. banks already are reeling from more than $165 billion of writedowns and credit losses, so shareholders are wary of unknown obligations that might force them to take responsibility for additional troubled assets. The risks have become so obvious that accounting officials are proposing new rules — some of which Citigroup opposes — that would force many assets back onto balance sheets.

Read moreCitigroup’s $1.1 Trillion in Mysterious Shadow Assets

Fed: No more bailouts, except Fannie Mae and Freddie Mac

This is article very important, because…
“The credit crisis has obviously entered into a new phase – the government has one bailout left in them, and this is it,” said Jeffrey Gundlach, chief investment officer of TCW Group in Los Angeles, which invests $160 billion.
And now all the related articles below make much more sense and here comes the meltdown of the financial markets.
If you do not know how to prepare yourself: Solution
If you want to know more on what is going on: World Situation
Take care. – The Infinite Unknown

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NEW YORK – The U.S. government is signaling it won’t throw a lifeline to struggling financial companies – except for mortgage linchpins Fannie Mae and Freddie Mac – marking a shift to a new and potentially more volatile phase of the credit crisis.

Such an approach could mean beaten-down investment banks like Lehman Brothers Holdings Inc. and regional banks must now fend for themselves as they try to recover from billions of dollars in mortgage-related losses. That is bound to unnerve an already turbulent Wall Street and make investors even more anxious as they await financial companies’ earnings reports that are expected to be down a stunning 69 percent from a year ago when all the numbers are in.

Related articles and videos:
More Than 300 US Banks to Fail, Says RBC Capital Markets Analyst
Run on banks spells big trouble for US Treasury
US: Total Crash of the Entire Financial System Expected, Say Experts
The Dollar is doomed and the Fed will fail
Fannie, Freddie insolvent, Poole tells Bloomberg
Foreclosures Rose 53% in June, Bank Seizures Triple
Small Banks: Billions in Troubled Construction Loans
Financial market losses could top 1,600 billion dollars: report
Dow suffers worst 1st half since ‘70
Fortis Bank Predicts US Financial Market Meltdown Within Weeks
Barclays warns of a financial storm as Federal Reserve’s credibility crumbles
Jim Rogers: Avoid The Dollar At All Costs
Ron Paul on Iran and Energy June 26, 2008
Marc Faber: ‘Misleading’ Fed Should Let Banks Fail
This recession could easily tip into a depression

And, for consumers already squeezed by tightening credit standards, it could mean getting a mortgage will become even harder.

Read moreFed: No more bailouts, except Fannie Mae and Freddie Mac