A2A with Nomi Prins

27

Nomi Prins is the author of the must read book, "All The Presidents' Bankers". It was an honor to have her stop by for this webinar and this recording is well worth your time and attention.

Over the course of this 35-minute presentation, Nomi discusses:

  • How the abolition of The Glass-Steagall Act helped to lead to the Financial Crisis of 2008
  • The still-growing market share of The Big Six, TBTF banks
  • The continuing interconnectivity of bank balance sheets and derivative positions
  • How much longer this current system can be maintained
  • The likelihood of "bail-ins" as a remedy for the next financial crisis

Again, I can't stress enough the value of Nomi's book. Similar to "The Creature From Jekyll Island", it's almost a history book in that it details the process of how we've found ourselves in this position...where The Federal Reserve is seemingly all-powerful and the major banks are all "Too Big To Fail". Please take the time to read it. Only by knowing how we got here can we ever hope to find a way out.

TF

www.tfmetalsreport.com/freetrial

  27 Comments

heathbr
May 7, 2015 - 1:33pm

Anyone buying

TBT or TMV?

Barfly
May 7, 2015 - 1:34pm

First

That was truly a great A2A, Turd. It came off very well. Nomi actually revealed something very interesting in her answers about working at the Vampire Squid. Back in 2001, they were disregarding her work with risk modeling. That tells me something. Either they didn't care and were obsessed with any possibility of making money regardless of risks like some kind of compulsive gambler - OR - they knew the fix was in and they couldn't lose. My gut tells me the latter is the case.

SS121
May 7, 2015 - 1:37pm

unedited nomi notes

notes nomi prins
sound check l/c
start record
tf- intro nomi, wrote book worked walls treet, ny times writer, member of bernie sanders council, she's plugged in, welcome nomi
np-thanks! tf-book is on par with jeckyl island
tf- glass steagal act was put in place and the bankers killed that, will it ever be back??
np- have to be huge breakdown, new leaders, and public awareness, so no. it was passed in 1933, after depression and 1929 crash.
depositors money used to not be insured, fdr and hoover and bankers even were behind glass stiegel to keep risk apart from deposits.
book describess the whole deal. lead to fdic etc.
over the years, worse bankers wanted to get a hold of deposits, and merge across states, etc... then during clinton glass steigel got dismantled by financial modernization act. washington lost accountability of banks
tf- book reference banks are tbtf, where does it go?
np- new era, banks subsidized by fed, qe, fed carries bank debt etc.. the big 6 are subsidized.. where do we go? they get bigger, nobody cares to fix. back in the day there was an interest in doing right, now.. nope. all plastered over, they are delusional.
tf- move in 10 year german bund says meltdown, all are intertwined and we seem teetering...is there a way out other than cb support??? how will next crisis be papered over?
np- we shouldn't even be here, it's astonishing. but there always seems to be a backup, and governments seem to think it's ok. all the markets are separate but have risk so it's interlocked. if multiples go down together the cb can't go lower rates forever. there are still countries that haven't got to zero. so it's still going.
tf- at g20 meeting all agreed to change laws to facilitate bail-ins. do you see that?
np- absolutely. deposits are what keeps them in tbtf status. fed used to be fallback, now deposits are fallback.
tf- ??Arthur- when will it crash??
np- i don't know, but it's not stable. now running on irrational statements and plastering over insolvency.. when?? global processes maybe play out, ecb, pboc, it's all playing out and keeping up appearances. crash requires multiple events, or an end to currenty paperover practices.
tf- sub-prime autoloans... run of defaults cascading, how would they deal with it.
np- disallow large withdrawals, all the stuff will be said. it goes back to pre 1929 days. it's all supposedly insured but it's so fragile that it may not matter
??Russ- is unraveling time compressing??
np- as long as there is room to drop rates the cbs can still posture. it ends when there is no more room, no where to go. it's all still about piling on securities, derivatives etc..
??Ian- how much faith do you put into gov stats??
np- numbers are either misleading, or based on other bogus data.
tf- so is it accurately tabulated?
np- there own reports don't even look good, media focuses on headline number. if you dig in, their raw data is painting a bad picture.
??Matt- how did you ever work for GS? how did it end?
np- wasn't there very long. resigned after year and half. too much internal pressure to do wrong.
tf- time for final four!!!!
np- sure...
f4-1- still on bernie's council?
np- i don't think so. his focus may have shifted
f4-2 good resteraunt in NY
don't know, i live in L.A.! hold on... artoroz pizza is a good old school place
f4-3 what is NFP number for tomorrow
np- i have no idea, ... headline number worse is my guess,
f4-4 do you own physical precious metal?
np- physical silver
tf- i give you 1200, you buy gold or silver?
np-i'd go 2/3 silver 1/3 gold. silver is maybe more risk but a less expensive way to play gold!

tf- towards wrap up, all the prez bankers is on amazon.
np-paperback is updated
closing out, np is in los angeles,
sign off, record off.
np-great questions!!
admin chat
bye/bye
end

excellent a2a np and tf!!

Barfly
May 7, 2015 - 1:43pm

Thanks, Barfly

It's funny...Nomi is smart and I enjoyed her book so much that I was nervous about asking dumb questions and sounding stupid. So much so that I fear I ended up asking dumb questions and sounding stupid...at least more so than usual.

So, anyway, thanks. I'm glad you thought it was OK.

silverflower
May 7, 2015 - 2:03pm

Panic on the Bond market?

https://www.zerohedge.com/news/2015-05-07/did-worlds-central-banks-hit-p...

Last man standing: Mr. ECB Draghi Dracula and his sister and brothers!

silverflowerTF
May 7, 2015 - 2:07pm

I can't remember you asking a stupid question ever.

Quite the opposite is true: Turd is getting better and better by the day. Thanks dude, for all you do for us awakened sheeples that are members of your army. Will give it a listen tomorrow morning on my way to Cologne (work.)

wildstylechef
May 7, 2015 - 2:36pm

Craig

You were awesome as always fear not in furure as you are with friends and we all think highly of you, well done my friend

Ian

canary
May 7, 2015 - 2:43pm

Comedy chanel...

"Market forces" at work today. It's better than "Saturday Night Life". More comedy tomorrow.

CaptK
May 7, 2015 - 4:01pm

Bill Bonner on Deflation, Inlation and the War on Cash

"How many old people and zombies do you need before an economy comes to a halt? Nobody knows. But the drag from debt is observable and calculable. Over the last three decades, approximately $33 trillion in excess debt has been contracted – above and beyond the traditional ratio to income – in America alone. And growth rates have fallen in half. That’s because dollars that would otherwise support current spending are instead used to pay for past spending. Our old debts have to be retired with current income. The money doesn’t disappear, of course. Some goes to creditors who spend it. Some comes back as capital investment, which is a form of spending. But as credit shrinks, generally, so does the economy. And that brings us to the impossible situation we’re in now. In order to get back to a healthy ratio – say approximately $1.50 worth of debt for every $1 in income – you’d need to erase all that excess that has already been contracted. In other words, you’d have to take $1 trillion out of the consumer economy every year for the next 33 years. It would be the longest and deepest depression in US history."

https://www.bonnerandpartners.com/take-warning-the-next-94-days-could-be-bad-for-your-wallet/

"Today, a long depression in the US would be unbearable. The public couldn’t stand it. Six out of ten households live paycheck to paycheck. Can you imagine what would happen if those paychecks ceased? Supposedly, the US economy is still growing… with the stock market near record highs. Yet, one out of every five households in America has not a single wage-earner. Among inner-city black men, ages 20-24, only 4 out of 10 have jobs. Half the households in the US count on government money to make ends meet. And 50 million get food stamps. What would happen to the cities – and the suburbs – in a real depression? What would Janet Yellen do? Would she rehash the words of Andrew Mellon in 1929 to “liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people?” Mellon was just suggesting that creative destruction be allowed to do its job. He was the last Treasury secretary to make such a forthright and honest comment. Thenceforth, Treasury secretaries and central bank governors could no longer accept the tough love of a free enterprise economy. They had to offer bogus rehab and claptrap therapy. They had to stop creative destruction. They had to “tell it like it wasn’t” because that’s the way people wanted it. They had to pretend to make a better world by improving the market economy. Today, a central banker or Treasury secretary who let deflation purge the rottenness from the system would be dismissed before sundown. Too much wealth, too many reputations, too much power and status depend on the continuation of the credit expansion. Instead of a Mellon, we will have a Greenspan, a Bernanke or a Yellen. And we will soon find out whether Mr. Bernanke spoke the truth in 2002 when he said: We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation. Threatened with deflation, the authorities will want to turn the tide in the worst possible way. What’s the worst way to stop deflation? With hyperinflation."

https://www.bonnerandpartners.com/deflation-works/

Safety Dan
May 7, 2015 - 8:48pm

Craig,  The A2A was really

Craig,

The A2A was really enjoyable. While I have not read Nomi's book, sounds like she enjoys living life in LA and speaking her mind. I enjoyed her comments about bank deposits, and the government stats. I know my family thinks I'm some kind of conspiracy nut with tin foil hat. Wish we could enlighten the yet unlearned. She has gone a long way to help that cause. Your interview has encouraged me to search out her book and read it.

Honestly Craig, I know I'm repeating what's been repeated, but true.. You are one great interviewer...

Live in the limelights! You deserve it, King of Turdville.. Hail King Turd!!

Key Economic Events Week of 11/11

11/12 Three Fed Goon speeches
11/13 8:30 ET CPI
11/13 11:00 ET CGP on Capitol Hill
11/14 8:30 ET PPI
11/14 Four Fed Goon speeches
11/14 10:00 ET CGP on Capitol Hill
11/15 8:30 ET Retail Sales
11/15 8:30 ET Empire State Manu Index
11/15 9:15 ET Cap Ute and Ind Prod
11/15 10:00 ET Business Inventories

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Key Economic Events Week of 11/11

11/12 Three Fed Goon speeches
11/13 8:30 ET CPI
11/13 11:00 ET CGP on Capitol Hill
11/14 8:30 ET PPI
11/14 Four Fed Goon speeches
11/14 10:00 ET CGP on Capitol Hill
11/15 8:30 ET Retail Sales
11/15 8:30 ET Empire State Manu Index
11/15 9:15 ET Cap Ute and Ind Prod
11/15 10:00 ET Business Inventories

Key Economic Events Week of 11/4

11/4 10:00 ET Factory Orders
11/5 9:45 ET Markit Services PMI
11/5 10:00 ET ISM Services PMI
11/6 8:30 ET Productivity & Labor Costs
11/6 Speeches by Goons Williams, Harker and Evans
11/8 10:00 ET Consumer Sentiment
11/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 10/28

10/30 8:30 ET Q3 GDP first guess
10/30 2:00 ET FOMC fedlines
10/30 2:30 ET CGP presser
10/31 8:30 ET Personal Income & Spending
10/31 8:30 ET Core Inflation
10/31 9:45 ET Chicago PMI
11/1 8:30 ET BLSBS
11/1 9:45 ET Markit Manu PMI
1/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

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