Wednesday, November 16, 2016

Did President-Elect Trump 
Just Inadvertently Kill The Golden Goose?
Gordon T Long*: "President-Elect Trump may have just unwittingly sowed the seed of an equity market draw-down which will send even more protesters into the streets of America. Donald Trump's stated economic policies are clearly pro-growth and if he manages to implement his pro-business, anti-regulation agenda, in the longer term they have the potential to surpass the bold and successful initiatives of Ronald Reagan. However, in the near term he has already unknowingly just shot himself in the foot .. With bond prices having removed $1 Trillion globally the expectations and pressures are now for the equity market correlation to more closely align with bond value .. Expect the correction of an over-valued US Equity market to be summarily and quickly blamed by the liberal media on the new Trump Administration before it has even taken office."
LINK HERE to the analysis


Anonymous said...

Fraud Endemic in Insurance Industry and Accountants Can’t Catch a Cold

The Big Four accounting firms are so bad at catching fraud that they couldn’t even catch a cold, with incentives in the industry totally screwed up. That’s the view of the of the whistleblower who uncovered the $65 billion Madoff Ponzi scheme and he thinks fraud is endemic in the insurance industry as well

Harry Markopolos is the former derivatives professional turned independent financial forensic investigator who spent nine years trying to convince the SEC that Madoff needed to be examined, but it was only the onset of the financial crisis and the massive redemptions he faced that forced Madoff to turn himself in.

Since then he has been a vocal critic of the SEC, writing the 2010 book ‘No One Would Listen: A True Financial Thriller’. In a special interview with Real Vision TV, Markopolos now has the institutionalized shortcomings of the audit world in his sights and identified the insurance industry as the next big sector for major financial fraud to come to light.

In fact, he intends to blow the lid on some major insurance frauds in 2017, which he hopes will lead to stronger regulation in the sector. Click here to see a clip of the Harry Markopolos interview on Real Vision.

Insurance Fraud Exposed in 2017

How this all comes out in the wash and who is left holding the baby when the music stops, remains to be seen. In addition to the negative interest rate environment, Markopolos said the insurance industry faces many risks that can’t be managed, such as an Ebola breakout or major earthquakes. “You find out that your reinsurers had too much earthquake risk that they were reinsuring. But you weren't measuring that before, because you didn't know to measure it. There is no measurement of cross-risk exposures. And so the whole system collapses. It's a daisy chain, sort of like AIG. If you don't rescue AIG, it's a daisy chain of risk, collapse after collapse, and before you know it, your financial system is blown up,” he said.

So it’s almost a lottery in terms of what issue comes along to start the chain reaction, but that doesn’t necessarily mean it has to be a natural disaster or a pandemic, with the industry ripe for fraud and financial scandal.

“I have some large insurance fraud cases that I'm going to make public in 2017,” Markopolos said. “And they're going to be in the tens of billions of dollars each. And I'm hoping that will be the catalyst for reform, hopefully for some congressional hearings and that we see national regulation of insurance and we see them become Basel compliant. Because there's lot of assets and liabilities there-- there's trillions in assets and liabilities there that are unregulated by anyone. And we don't know what the cross-risk exposures are. And so it's a recipe for a systemic disaster.”

Anonymous said...

Franco-Nevada chair remains a bull on gold post-Trump win

BNN speaks with Pierre Lassonde, chairman at Franco-Nevada, following Donald Trump's historic presidential win. He remains bullish, but sees more volatile price moves for gold. "You will see gold move up and down $100 literally in a matter of days," he says.