Whispers On Wall Street: Major Financial House Is Going to Implode; Could It Be Morgan Stanley? (MS, JPM)
Mac Slavo:Â Before the collapse of mega behemoth Bear Stearns there were rumors that a major Wall Street firm had bitten off more than it could chew. Mainstream media, for the most part, completely ignored the rumors, with some financial experts like CNBCâ€™s premier Wall Street insider Jim Cramer literally screaming at viewers on the March 11, 2008 airing ofÂ Mad MoneyÂ in which he vehemently denied any problems saying that the company was â€œfine.â€
Just a few days later Bear Stearns collapsed into heap of rubble and was offered up for sale at just $2 a share to JP Morgan Chase (NYSE:JPM). This incident is widely believed to have been the catalyst that kicked off what we now refer to as the sub prime mortgage collapse.
In the last few months weâ€™ve started receiving signals similar to what contrarian observers were seeing prior to the Bear Stearns collapse.
Big money flows out of financial stocks by key financiers like George Soros and John Paulson wereÂ reported just last weekÂ and tens of billions of dollars have been withdrawn from the European banking system since Spring. The government for its part, has taken steps to lock down the banking system so that not only cancustomers no longer withdraw funds from money market accounts in the middle of a panic, but a recent federal court case set a new precedent that has essentially given the go ahead for banks and investment firms toÂ use segregated customer deposit accounts to engage in highly risky trading strategiesÂ without the threat of ever being prosecuted.
Now, aÂ report from analysis firmÂ Beacon Equity ResearchÂ suggests that there isÂ an unusually high amount of chatter on Wall StreetÂ surrounding the possibility of another major financial collapse in the making. When the Department of Homeland Security or other intelligence services hear chatter they often raise the terror alert level, deploy federal SWAT teams and go on complete lock-down.
Thus, we should consider this latest piece of intel from those with their fingers on the pulse of Wall Street as a potential game changer:
With the stock price of Morgan Stanley (NYSE:MS) inches from its Armageddon lows of Oct. 2008,Â whispers of the imminent overnight collapse of this U.S.Â broker-dealer begin to surface.Â Client funds, again, are at risk.
â€œIâ€™m hearing rumors that another major financial house is going to implode,â€ saysÂ TruNewsÂ host Rick Wiles.Â In fact, the name Iâ€™ve been given is Morgan Stanley . . .
â€œItâ€™s going to be put on the sacrificial alter by the financial elite.â€
Beyond the evidence of a teetering stock priceâ€”Morgan Stanleyâ€™s troubles may never go awayâ€”leading to bankruptcy, if traders can glean anything from the financial activities of front-running insider George Soros, the man who warned in Jun. 2010 that the globalÂ financial crisisÂ has entered â€œact II.â€
Adding to the speculation of a Morgan Stanley collapse,Â BloombergÂ coincidentally pens an article on Aug. 23â€”the following day of theÂ TruNewsÂ broadcastâ€”in which the author Bradley Keoun recounts the dark days of Morgan Stanley at the height of act I of theÂ financial crisisÂ in 2008.
â€œAt the peak of Morgan Stanleyâ€™sÂ FedÂ borrowings, on Sept. 29, 2008, the firm reported that liquidity was â€˜strong,â€™ without mentioning how dependent its cash stores had become on the government lifeline. . .â€ states Keoun.
But hereâ€™s where strong advice fromÂ Trends Research InstituteÂ founder Gerald Celente and formerÂ commoditiesÂ brokerÂ Ann Barnhardt should be heeded.Â Both consumer-friendly analysts implore investors and savers, alike, to withdraw from the financial system, warning that allocated brokerage accounts are not truly allocated.
Regulators were asleep at the switch in the cases of MF Global and PFG Best, both filing bankruptcy post 2008, taking customer funds with them to the financial grave.Â Why not Morgan Stanley?
â€œThey donâ€™t give you the information to be able to decipher whether they have changed anything,â€ adds Hurwich.
Why an establishment cheerleader such as Michael Bloomberg would allow an article which serves to remind investors of Morgan Stanleyâ€™s financial problems at this time may lend some credence to Rick Wileâ€™s sources, who hear chatter about the impending doom of Morgan Stanley.
The timing of the Bloomberg article is no coincidence.Â Michael Bloomberg is onlyÂ doing his part for the globalÂ bankingÂ cartel by tipping off that Morgan Stanley is ready for the â€œsacrificial alter.â€Â Â Get your money out.
We can make predictions or forecasts based on rumors and news, and often times weâ€™ll be berated for acting to protect ourselves based on this information. Often, even rumors and chatter have been responsible for driving a particular stock or market up or down, so the very news itself, whether true or not, may set the ball in motion.
But, the fact of the matter is that neither the SEC nor Ben Bernanke nor Tim Geithner nor the White House nor mainstream financial pundits nor Wall Street insiders will ever tell us ahead of time that billions of dollars of our wealth is about to be wiped out.
We will only find out after the fact.Â GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!
Youâ€™ve now heard the rumor. Youâ€™ve been following the news. The decision is in your hands.