Weekly News Wrap-Up 5.25.12

By Greg Hunter’s USAWatchdog.com 

The big meeting, this week, in Iraq concerning Iran’s nuclear program was a big bust.  The meeting, once again, ended the same way the last one did—with a date for another meeting.  The next one is in Russia, next month, and will involve all the same world powers (U.S. UK, France, Germany, Russia, China and Iran).

The West wants Iran to stop enriching uranium to high levels for fear of turning it into a nuclear weapon.  Iran has repeatedly said its program is for the peaceful production of energy.  Israel has called the ongoing meetings a stalling tactic and is not ruling out military action, even though it has agreed to allow international inspectors.  Greece is inching closer to a Euro exit.  If it leaves the European Union, will Spain and Italy be next?  Will the Fed and European Central Bank be forced to print money, again, to stop another calamity?  Some say the problem will be “contained,” but isn’t that what was said about the sub-prime mortgages in 2007?  That proved not to be contained as the market has cut home prices in half in some markets in the U.S.

JP Morgan’s derivative trading loss is reportedly more than 3 times bigger than the original $2 billion first disclosed by Jamie Dimon.  Former Bank regulator and professor of law and economics, William Black, calls the ongoing mess and JP Morgan a “devastating threat to our economy and our democracy down the road.”   Facebook’s IPO was a flop and some say a huge rip-off.  Morgan Stanley, who was brokering the deal to the public, is being sued for allegedly not disclosing negative information about the company before the IPO.

Morgan Stanley and Facebook say the lawsuits are meritless.  Small investors lost an estimated $600 million, and the stock has lost about $30 billion in market cap.  Romney and Obama are running close in the polls for president.  Remember, Ron Paul, the only Republican to bring young voters out in droves, could be wooed by Romney.  Paul, also, might run on a third party ticket, although he has said his plan is to change the direction of the Republican Party.   I’ll bet there are still lots of surprises in store in this election year.  Greg Hunter gives his analysis on these stories and more in the Weekly News Wrap-up.

Comments
  1. slingshot

    What games we play.

    Kick the Can down the road, with the WAR with IRAN
    Musical Chairs, which major bank will fail first.
    Simon Says, with the European Union with Greece.
    Pin the Tail on the Donkey, to the US Taxpayer.

  2. Gene Pledger

    Thank you for your work Greg!!! I’m not a financial person but I am a dad and responsible for my family and appreciate the information you are sharing. It seems most everyone thinks it’s business as usual but it is as far from “usual” as you can get. Keep it up and thanks again!

    • Greg

      Thank you Gene for your comment and support!
      Greg

  3. art barnes

    Facebook is another example of the media, CNBC & the Wall Street elite always trying to hoodwink basic Americans out of their hard earned cash. Just another example of another company that doesn’t produce and or manufacture any real product. Seems like about everything Wall Street does these days, like JP Morgan’s so-called 2 billion loss, gets outed earlier than the old boys are used to. Before long, they won’t even get the bags of cash out the building and onto the off shore boat before the truth is revealed. Of course, they will never have to face any criminal charges for their theft of the middle class, as they always hold a little back for campaign contributions, which they should write off as “business insurance” instead of a special box on their tax returns.

    As to “Iran in Iraq” meeting, what a joke, all the parties knew they were going unto Russia for another meeting with vodka & fish eggs. One has to wonder why a peaceful nuclear program needs to be done below ground in the desert, seems out leaders could at least figure that one out. Out politicians can see it waggle, hear it quack, watch it fly, and still come up with the possibility that it could be an elephant. Clearly, Iran outplays the West on every level,its probably hard for Iran’s negotiators to hold a straight face when dealing with such an incompetent State Department(s).

    Lastly, as to Greece, the Greek people deserve to be free and go their on way. Already in severe recession, out of sight unemployment, run away inflation, with no end in sight, what have they got to lose?

    Greg, have a nice memorial day with your family, your work will be acknowledged.

    • Greg

      Thank you Art for your comment and continued support.
      Greg

  4. mike gunther

    How long will it be till we wake up one morning and the talking heads of the MSM are crying about the seismographs going crazy near Iran and that it can only mean Iran has conducted their first nuclear test. Then it will be too late. Israel will have to do the calculus soon of whats worse, Convential War or Nuclear War in the Middle East. The real dahger is that Western leaders see the mess and possible permutations coming out of a middle eastern conflict and think the risk of a wider war, Russia intervening etc. will keep it from happening. However in Terhan the True Believers want the Chaos to usher in their Madi Messiah who will kill the Infidels. I wonder if any of the Mullahs in Terhan are having second thoughts or has Islamic fervor blinded them to the carnage they are about to unleash.

    • Saq

      seriously? You are buying into the Iran threat? Iran has invaded anyone in a long long time. They aren’t stupid. the real terrorist in the middle east is Israel.

  5. G. R. Cooper

    Your report today says:
    “JP Morgan’s derivative trading loss is reportedly more than 3 times bigger than the original $2 trillion first disclosed by Jamie Dimon.”
    Wasn’t it actually $2 billion (with a ‘b’)?

    • Greg

      Yes G.R. I meant to write $2 billion instead of trillion. I did say $2 billion in the video, thank goodness. Thank you for point out my mistake, it is correcte3d now.
      G

  6. Marcel

    ‘Iran’s nuclear program was a big bust’

    Another train wreck in progress,a repeat of the North Korea failure talks by the US. and international community of losers and wimps or we can go back to Neville Chamberlain and Munich or just call it;
    ‘The Checkers Player in the White House’s Last Stand.’

  7. Brian

    On your weekly comments today . You said 2 Trillion dollar loss for JP Morgan. It is 2 Billion. Small typo, big difference regarding the numbers.

    JP Morgan’s derivative trading loss is reportedly more than 3 times bigger than the original ******$2 trillion first disclosed by Jamie Dimon. Former Bank regulator and professor of law and economics, William Black, calls the ongoing mess and JP Morgan a “devastating threat to our economy and our democracy down the road.” Facebook’s IPO was a flop and some say a huge rip-off. Morgan Stanley, who was brokering the deal to the public, is being sued for allegedly not disclosing negative information about the company before the IPO.

    • Greg

      Brian,
      Yes sir you are correct. I made a mistake in the written version of the post but thank goodness I did say $2 billion dollar loss in the video. Thank you for having my back. Never hesitate to point out a mistake. (This also goes for anyone reading this site.) My goal is to be accurate and never make a mistake, but sometimes some slip by.
      Greg

  8. ONTIME

    The Uncredentialed fullfilled the dream of a life time for RazzPutin and company by letting them into the Big Eight, which is akin to asking for recognition of Israel in the communist UN. Theywill now sabotage every decision this inept group of worldly clowns make. Makes you wonder about what else this uncredentialed jerk is going to screw up?

    • Greg

      Ontime,
      Nice short analysis. Thank you.
      Greg

  9. Hector W Padilla

    I’m young, hispanic ( not an issue, but those taking polls think it is), living in Southern California, middle class, and I’ll be voting for Ron Paul. You’re right though, the debates are “blah” to me, sure i voted for Obama in 08, but today i see and hear nothing but etchasketch talking points that are just plain stupid. They are definately not addressing the economy, wall street crooks, war, etc.

    Call me cynical, but the week when they announced that Minorities would surpass the Majority in 2040 or something like that, i thought, ‘ how convinient, that in an election year they trump this?’…. i mean in the broader context of inflamed passions, nothing rallies up the voting booths as the subject of RACE rather than things that really matter…. ‘EXTRA EXTRA- JP Morgan just lost 2 BaBABaBillion and counting, HEy MF GLOBAL JUST lost 1 BILLION – oh and COrzine is Scott free, Hey BAnk runs are starting to commence in SPAIN and GREECE, Possible war with IRAN, Hey China’s Stealth Fighter is ahead of schedule-surprise’…. No it’s more like ” OH MY GOD, we’re being overruned by Minorites!! OMG, say what?!! sound the alarms, it’s a code 4!!! …. right or wrong, all i’m saying is i wish people would place that much passion and attention to the things that really do matter… like a possible collapse of our US currency.

    • Greg

      Thank you Hector for sharing your story and comment.
      Greg

  10. M SMITH

    Greg, I hope we will have heros, not zeros when push comes to shove, the shove has been on us for many decades & now it’s time to become a hero! In GOD’s eyes those who submit to total slavery are zeros, those die for freedom in their own nation are heros. GOD Bless All!

  11. Sean S

    Hi Greg

    Re: Facebook Float.

    As a trader I don’t have an iota of sympathy for any of the IPO subscribers that have lost money on the float. Forgot about the tech wreck and all the hype that preceded it did they?

    By the way, since when is an IPO a guarantee of instant profits to IPO subscribers once the allocated stock begins trading. Actually – never. But then, hats off to those that set up and concluded an apparently successful stock float in such a challenging and hostile economic enviroment. It’s not a “flop” for them. Just goes to show that there are still lots of dumb buyers.

    For now, those that gambled on instant profits post IPO lost. So tough luck on that over hyped IPO. Mr Market as usual will ultimately decide the stock price and that’s all that is happening here. Anyone that uncritically believes revenue and profit forecasts is naive.

    Facebook is just another entertainment internet business that produces nothing of value and thus adds zero productive value to the economy. It’s just a host for advertising. You could close it tomorrow and it would make tiddly squat difference to anything. The advertisers would just go elsewhere to spend their ad budgets. Nearly all of Facebook’s revenue is sourced from advertising, a particularly discretionary and fickle item of expenditure for any business that engages in significant consumer advertising.

    In contrast to the USA, countries that have companies that are producing and exporting in demand items of substance and real value, whether resources, energy or manufactured products etc., are doing well.

    In my humble opinion, the financial media would do all a service by concentrating their attention on solid companies that are producing something of value, adding to employment and national skills and adding real wealth to the economy. These are the businesses that investment cash should be directed to rather than Flim Flam unproductive entertainment outfits like Facebook.

    Cheers Greg.

    • Greg

      Thank you Sean for weighing in. I like to say when you sleep with dogs you get fleas.

      Greg

  12. Hector W Padilla

    Greg: could you please comment on the recent news that Spain’s Bankia is requesting the equivalent of a 24 billion bail out; could this increment JP Morgans 2 billion derivative loss? Thnx.

    http://www.npr.org/blogs/thetwo-way/2012/05/25/153720370/spanish-lender-requests-24-billion-bailout?sc=17&f=1001

    • Greg

      Hector,
      I do not know but it has been reported the big U.S. banks have hundreds of $billions in exposure to the EU debt crisis probably more than a $trillion.
      Greg

  13. This guy

    Great work, Greg, as always.
    I see in the ‘news’ today that there has been a discovery of some kind w regard to Iran enriching uranium at 27 percent. This info was supplied by a UN agency of some sort or another. My question is, who is to be believed here? The UN or Iran?
    Keep up the excellent job and the high standard you’ve set for yourself and site.

    • Greg

      Thank you This Guy. If you believe nothing else, believe the world is dangerously close to war. Please take steps to protect your wealth and health.
      Greg

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