Why Gary Cohn of Goldman Sachs Supports Restoring Glass–Steagall


Cohn Gary_D

 

QUESTION: Mr. Armstrong; In Germany DWN wrote that Cohn of Goldman Sachs is in favor of returning Glass–Steagall. This seems strange. Do you have any insight?

ANSWER: Very simple. Glass–Steagall was separating investment banking from banks. Goldman Sachs is by no means a traditional bank but were always an investment bank. If you restore Glass–Steagall this will help Goldman reduce its competition from JPMorgan Chase, Bank of America and Citigroup. All three would then be barred from investment banking.

Cohn’s remarks obviously surprised many on Capitol Hill, but that’s because they do not understand the banking industry they claim to regulate. Bloomberg reported: “Many high-ranking representatives of the banking industry have apparently thought that the integration of former bankers like Cohn in the White House would prevent major upheavals such as a reintroduction of Glass Steagall. But Wednesday’s remarks rather suggest that Cohn could become the trump if the Congress is actually tackling the project.”

Keep in mind that now the actual banks who take deposits and lend money to individuals will lobby against Goldman Sachs which is still an investment bank, not a commercial bank. You do have Democrats like Senator Elizabeth Warren of Massachusetts and even Republican Senator John McCain from Arizona demanding a “Glass Steagall Act of the 21st Century.” However, neither one of them really comprehends the industry to say the least.

My bet is any reform coming will include more reporting of cash transactions and we may even see Democrats push to eliminate the $100 bill.

Why Davos Predictions Are Always Wrong!


Davos

QUESTION: Mr. Armstrong; I read the quote that Kenneth Rogoff made about the predictions of the attendees at Davos. He told Bloomberg: “A joke, which I have been telling since the last meeting in Davos, culminates in the fact that the predictions made in Davos are always wrong… No matter how unlikely, the most likely event is the one that is the opposite of the Davos consensus.”

I was talking to a friend who is rather high ranked in a European bank and he said when they really want a forecast they call you. Why do you not speak at Davos? Everyone knows you. So why are you not taking a more prominent role?

Thanks for what you do share with us on the outside.

DY

ANSWER: The Davos meeting is way too public to be important. Its just a convention for food, drink, and parties. It is not serious. However, the media thinks it is like the Bilderberg meetings. I know people who attend both. They no more can decide the fate of the world than they can weather for their flights home. The majority MUST always be wrong. That is how all economics and markets move. Look at the Dow. This is historically the most bearish rally in all of its history. The major have been addicted to predicting every new high is its last. People keep trying to short it and they get stopped out. The shorts keep feeding the rally – not fresh longs. That is why the majority of people are NOT in this market.

The majority must ALWAYS BE WRONG and that goes for both Davos and Bilderberg meetings. For years, being perhaps the largest institutional adviser covering the world, my clients NEVER wanted to see our forecasts on the front page of the WSJ when they were paying for that info. The people who spout out their forecasts to everyone who will listen are trolling for business. If you have the business, you do not need to troll.

There is never any point in appearing publicly at Davos or the Bilderberg meetings to hand out advise for free when they will not listen anyhow until there is a crisis. So you cannot stop or alter the trend for no politician will change course until compelled to do so. Hence, it would be just a waste of time. The such time I would consider speaking at either is when the crisis comes. I have always regarded myself as a crisis manager because nobody will listen to prevent a crisis. They always hate to let go of power.

US Property Tax Comparison by State


US Tax Ranking by State

The latest report on tax comparisons within the USA has been released. A report from Attom Data shows just how nuts things are becoming with regard to taxes. Property taxes have become really insane in the North. The average annual property tax bill in Alabama in 2016 was $776 compared to the the highest average is New Jersey where it stands at $8,477.

State Income Taxes

Now filter in the State Income Taxes and what emerges is human nature. For all the people who complain about multinational companies moving offshore and then deny that it is tax related and try to characterize that as simply labor is cheaper, need to look more closely. The multinational companies I restructured we looked at the whole picture. Wages were a small part and only one component. What was the amount of social taxation on top of the wages, property taxes in a region, and then the corporate tax. Ger – it looks like the individual is making the same analysis.

USA Map Migration

The net migration of people within the United States mirrors the same thing taking place corporately on a global scale. They are leaving the highest taxed states and moving to the lower taxes states. Taxes are more than just what you pay, they push up the cost of living because everyone is paying a higher tax rate. I took a friend out with his family down from NJ and the bought ice cream cones. The bill was about half that of what they pay at the Jersey shore. I said see: high taxes ripple through everything within the economy raising the price of everything you buy. The net bottom line – taxes rob much more of your disposable income than anyone actually attributes to government directly

South Korean Paper Reports China Has Deployed 150,000 Troops To North Korea Border


Tyler Durden's picture

While the catalyst is unclear, it appears the market dropped as headlines of further sanctions against Russia appeared and reports of China deploying 150,000 troops to its North Korea border.

According to Korean news agency Chosun, the “Chinese army has deployed about 150,000 troops to the North Korean border in two groups to prepare for unforeseen circumstances.” The reason: the prospect of “military options”, such as preemptive attacks on North Korea, like the one the United States launched on Syria.

More Google translated:

As the United States announced its independent North Korean behavior and moved the United States Navy’s nuclear-powered Calvinus (CVN-70) carrier class to Singapore, the Chinese army has deployed about 150,000 troops in two groups to prepare for unforeseen circumstances.

“The report said. It is because of the prospect of taking “military options”, such as preemptive attacks on North Korea, just as the United States has launched an air raid on Syria.

Japan’s Sankei Shimbun reported on the 9th that the Syrian missile strike in the United States shocked China, suggesting that the People’s Liberation Army forces are moving toward the Yalu River, .

The newspaper said the video was also broadcast on the Internet, but the authorities removed the relevant information, saying the move was a medical and aft support unit for the Shenyang bulb (the northern light bulb)

Another possible catalyst is a report by Russia’s interfax that Moscow is preparing for more sanctions, and has warned local air companies about a possible suspension of charter flights with Tu

  • POSSIBLE INTRODUCTION OF SANCTIONS AGAINST RUSSIAN MILITARY OVER SYRIA NOT TO AFFECT RUSSIA’S ACTIONS IN SYRIA, OPERATION TO FIGHT TERRORISTS TO CONTINUE – OZEROV
  • RUSSIAN AIR COMPANIES RECEIVE WARNING ABOUT POSSIBLE SUSPENSION OF CHARTER FLIGHTS WITH TURKEY – SOURCE

Whatever the catalyst, the reaction is clear:

Dropping stocks below the levels right before Syrian airstrikes began…

 

The Dow is back at crucial support at the 50–day moving average…

 

Taking everything but Trannies back into the red for the day.

Gold is bid back over $1250 as USDJPY suddenly plunges.

Doctor Dragged From United Plane After Computer “Solves” Overbooking Problem


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A man was violently dragged off of a United Airlines flight Sunday evening after it was apparently overbooked, according to passengers who were on the plane.

https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2Faudra.dickerson%2Fvideos%2F10104378182069960%2F&show_text=0&width=400

As The Courier Journal reports, a United spokesperson confirmed in an email Sunday night that a passenger had been taken off a flight in Chicago.

“Flight 3411 from Chicago to Louisville was overbooked,” the spokesperson said. “After our team looked for volunteers, one customer refused to leave the aircraft voluntarily and law enforcement was asked to come to the gate.

“We apologize for the overbook situation. Further details on the removed customer should be directed to authorities.”

Passengers were told at the gate that the flight was overbooked and United, offering $400 and a hotel stay, was looking for one volunteer to take another flight to Louisville at 3 p.m. Monday. Passengers were allowed to board the flight, Bridges said, and once the flight was filled those on the plane were told that four people needed to give up their seats to stand-by United employees that needed to be in Louisville on Monday for a flight. Passengers were told that the flight would not take off until the United crew had seats, Bridges said, and the offer was increased to $800, but no one volunteered.

Then, she said, a manager came aboard the plane and said a computer would select four people to be taken off the flight. One couple was selected first and left the airplane, she said, before the man in the video was confronted.

 

Bridges said the man became “very upset” and said that he was a doctor who needed to see patients at a hospital in the morning. The manager told him that security would be called if he did not leave willingly, Bridges said, and the man said he was calling his lawyer. One security official came and spoke with him, and then another security officer came when he still refused. Then, she said, a third security official came on the plane and threw the passenger against the armrest before dragging him out of the plane.

“Everyone was shocked and appalled,” Bridges said. “There were several children on the flight as well that were very upset.”

Sean Spicer White House Press Briefing – April 10th 1:30pm Live Stream…


McCain: Trump Administration Rhetoric ‘Probably Was Partially to Blame’ for Syria Chemical Attack


McCain is a total retard why does anyone listen to him!

SHADOW BROKERS HACKERS RELEASE NSA HACKING TOOLS TO PUNISH TRUMP FOR ‘ABANDONING’ HIS BASE


All out of control FUBAR

US Navy strike group heads towards N. Korea over Pyongyang’s ‘nuclear threat’


With the deep state involved Trump must be very careful about who he believes!

Russian Arrested In Spain Over Suspicion Of US Election Hacking


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An alleged Russian hacker, Pyotr Levashov, has been detained in Barcelona at the request of the FBI, an arrest that set cybersecurity circles abuzz after a Russian broadcaster raised the possibility it was linked to the U.S. presidential election, AP reports. A spokeswoman for Spain’s National Court said that the Pyotr Levashov was arrested in response to a U.S. computer crimes warrant while a spokesman for the Russian embassy in Madrid confirmed the arrest on Sunday.

While it was not immediately clear why Levashov was arrested, Russian television station RT reported that Levashov was arrested under a U.S. international arrest warrant and was suspected of being involved in hacking attacks linked to alleged interference in last year’s U.S. election. Peter Carr, a spokesman for the U.S. Justice Department’s criminal division, said: “The U.S. case remains under seal, so we have no information to provide at this time.”

Defusing speculation that the arrest was in connection with the election hacking as some have suggested, Reuters reports that according to a U.S. Department of Justice official the arrest was a criminal matter without an apparent national security connection. Spanish authorities notified the Russian embassy of Levashov’s arrest on Friday, the embassy spokesman said.

The NYT adds that computer researchers who have linked the long-running computer spam business of the man known as Peter Severa to malware used in 2012 to influence a domestic election in Russia say his arrest could give other investigations important information. Levashov was arrested in Barcelona, where he had been vacationing with his family, according to a report on RT, a state-owned Russian television network. The report cited his wife, who said the Spanish police had detained Mr. Levashov at the request of the American authorities. Levashov’s wife Maria was quoted by RT as saying that her husband was arrested by armed police at their apartment in Barcelona. She said her husband told her he had been accused of creating a computer virus “linked to (President Donald) Trump’s election win.”

Spamhaus, a group that tracks spammers, has for years listed Peter Severa as among the top 10 perpetrators in the world, and has identified him as Mr. Levashov. Brian Krebs, an American cybersecurity researcher, wrote in 2012 that Peter Severa could be another Russian man, Viktor Ivashov, and not Mr. Levashov.

The Russian name Peter Severa, which translates roughly as Peter of the North, could refer to Mr. Levashov’s hometown, St. Petersburg, or Peter North, an actor in pornographic films, in a reference to the online pornography businesses. Along with sending spam advertising, according to Spamhaus, Peter Severa worked with Alan Ralsky, an American spam operator who was convicted in the United States of fraud.

The Russian cybersecurity researchers Andrei Soldatov and Irina Borogan wrote in 2012 that participants in online Russian hacker forums were discussing whether Peter Severa had been recruited by the F.S.B., the successor to the K.G.B. The researchers said Peter Severa had been on closed chat sites trying to recruit underground hackers for a later abandoned effort by the Russian security services to crash Islamic extremist websites.

Peter Severa’s spam operation ran a sophisticated, evolving family of computer viruses called Waledac and later Kelihos, developed in part by a former military engineer also living in St. Petersburg named Andrei N. Sabelnikov, according to a 2012 American court filing by Microsoft.

The court filing and related forensic work on the Kelihos virus illustrated how criminal hacker tools are repurposed for political ends. The filing identified Mr. Sabelnikov as the designer of the Kelihos virus.

The Kelihos virus, which had been devised to spread spam, was used during the Russian election in 2012 to send political messages to email accounts on computers with Russian I.P. addresses. The emails linked to fake news stories saying that Mikhail D. Prokhorov, the businessman running for president against Vladimir V. Putin, had come out as gay.

Even if Levashov’s arrest is linked to the alleged US election hacking, it may come at an awkward moment, just as Trump’s foreign policy U-turn stands to alienate the Kremlin, and bring any “detente” momentum between DC and Moscow to a grinding halt. It is also unclear how “hacking” via spam may have influenced potential voters’ choices.

In January, Spanish police arrested another Russian computer programmer, whose name was given as “Lisov” and who was wanted by the United States for leading a financial fraud network.