It's not looking good for the stock market or big banks

There is a group you have probably never heard of other than here and I don't talk about them often. It is called the Bank of International Settlements and it sort of coordinates between all the worlds central banks. Well, they just issued a paper on how they might recapitalize to big to fail banks with bail-ins and some other things.

Yahoo - Reuters - BIS lays out "simple" plan for how to handle bank failures

The actual proposal from BIS's own website is here. BIS - A template for recapitalising too-big-to-fail banks.

What is going on is that the IMF and governments want to take a "bail-in" approach favoring depositors and BIS wants to put some others in a better situation. What I find really interesting is that with all of these governments and banks suddenly publishing their plans for what to do with the investment banks fail again, why is it barely mentioned in any of the financial papers?

Here is what is going on with the banks at the moment. New York Times - Quantity Over Quality in Bank Profits. The large banks are showing higher profits; but, not from lending out money. One of the things these banks did was decrease how much they set aside in the event of losses on loans.

Traditionally banks were different. You would deposit your funds for safe keeping and they would loan money out to people to buy houses, start businesses and buy cars or other large purchases. The bank put money in real assets that effected their community. During the period of deregulation things changed. They allowed all banks to become investment banks. Banks began finding they could make more money off the stock market and keep the profit. They take your deposit and then gamble on the stock market. Risky investments don't matter because they are gambling with your money.

While I will link to the financial mainstream media, the fact is that you cannot trust them. How many of them predicted the housing crash or the stock crash? Yeah. The media acts as a cheerleader for Wall Street or they won't get the interviews or the insider information that allows them to make money too.

I expect volatility; but, the real challenge comes on the 21st. Be well.

Just More News About Wall Street and some music

I am a little bored and a little tired. I thought I might make a final post for the night and listen to some music. lets get the news out of the way.

Yahoo - Reuters - Wall Street Week Ahead: Good news on jobs may be bad for stocks. The article is saying that if more people get jobs, it will hurt stock numbers because the Federal Reserve might stop giving away cheap money to investment banks.

Yahoo - Wall Street Journal - Rising Stock Prices Flash a Warning…Selloff Ahead?. Psst, you cannot tell anyone; but, I will tell you what is going on. The smart guys are being played big time. The Federal Reserve is going to slow down on buying bonds so they scare investors into getting out of stocks and into bonds by saying that the market is going to drop and it probably is. Stocks, bonds, banks or your bed. You got to put your money somewhere. Keep an eye on the market and don't sell your stocks when the market goes crazy. If you have stocks in banks, get out. I am no financial adviser; but, that is what I tell my friends who ask me.

Now to the music. The Pimpernel listens mostly to Rock and Roll, I listen to it all, punk to pop. I listen to Opera, classical, country and love big bands; but, my heart is in jazz. Modern jazz, old school, new school, anything. I love jazz, it grabs me. Here are some modern twists on it that I am in love with.

YouTube - BOZ SCAGGS - Breakdown Dead Ahead

YouTube - Steely Dan | Home At Last

YouTube - Dave Brubeck - Take Five

YouTube - Love Story Theme - By Henry Mancini

Want to hear something wonderful. A very sultry and sexy version of an old torch song. Watch it all the way through. YouTube - Alice Fredenham singing 'My Funny Valentine' - Week 1 Auditions | Britain's Got Talent 2013. I wish the young lady joy.

YouTube - one from the heart.