Submitted by SD Contributor AGXIIK:

Dr Willie has advised us that Morgan Stanley appears to be on the ropes.  I’ll weigh in with my observations and some ‘on the ground’ suggestions.
MS failure?   That would explain the 600 CPAs hired at $500 an hour to dive into an unnamed bank  on Wall Street.  No one has named the bank or banks that received a hypo from the Fed in the last month.  It was $800 million and this is the first time since 2008 that the Fed has done a hypo.  Someone was real short on liquidity.

If you are in the umbra of MS your money will be gone ala MFG, protected by the 7th Circuit court ruling
that your money used as collateral is now the property of the creditor.

IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL.

If you are in the penumbra your money is at complete risk given the new rules in the MMA market that are designed to prevent bank runs.  The southern Euro tier countries have limits that range from $400 to $1,500 max withdrawals a day coupled with draconian currency and PM border controls. If your money is in the bank you will not be able to get to in.
Spain has seen 5% of its bank deposits flee in July. The bank run is a full blown race to exits.  Remember this one fact.  IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL.    Game over in Spain folks.
People are trading their skills through time banks in Spain.    Did you see the movie ‘In Time”  It’s real in Spain.    Bank holidays are real and coming to a town near youCredit Agricole reported a 63% drop in earnings due to losses in their Spanish bank subsidiaries.  No comment was made about the capital and equity losses suffered by CA due to these Spanish banks in the tank.   Dexia Bank is about to hand the Waffle Countries a $125 billion haircut.  It’s Dexia’s third run to the well in 2 years.
Some say the US is worse off than the Euro zone   Could be given the 50 states are all pretty much bankrupt.  At least some of the Euro zone like Belgium, Finland and  Germany are still sort of ok but going into recession.

With this in mind and know the present regime would love to stay in power, if MS goes down and takes a few other banks with them the DC crowd will declare a bank holiday.  Here is how Susanne Posel describes the potential scenario.

On Friday there is banking shut down with the blame shifted to a Flame like virus.  Its a false flag like the tests done at Nat West and RBS in UK and Ireland
On Monday the banks reopen with the assurances that there is nothing to be concerned about—virus problem solved
72 hours later martial is declared since the problem was not the virus. It was and will be the systemic failure of the banking system in the US and maybe Europe.
That 72 hours will be your queue to close your accounts and remove yourself from the banking system.   Taking cash from your account and buying any form of supplies you need to get by will be the order of the day.  Buying some silver at your LCS early Monday morning will be a good idea. Take the day off. Close the shop and fill up your gas tanks and other petro stockpiles.  Move away from the city if you can, take a 1 week vacation and bivvy somewhere outside ground zero.
This is what I would do and have done nearly everything on my list some time ago.  The cash conversion is in process and maybe a little phyzz purchase will top off the tanks.

Remember, the first ones out get the best deal!!

  1. It is coming, no doubt. It should have and would have come and gone by now but the Fed’s propping of the global banking cartel has simply extended the inevitable. Food, water, silver and heat are the order of the day here folks. If you don’t have a wood stove, get one. If you live in the city, move out or at the very least, get some protection. When the banks start to withhold your dollars, that’s when things start to get interesting. When people’s children are hungry and have no more clean diapers, that’s the tipping point. People thought I was nuts in 2009 when I spoke of these scenarios coming in the near future but now those naysayers are beginning to smell the coffee. I hope it all never happens and I turn out to be wrong, nothing would make me any happier than that.

    • Unfortunately SS if it does not happen the hellish influence over our lives will continue. The time has come where TRUTH must be exalted above every lie, above every deceitful act, and above every illegitimate influence so justice can be served! To the point if a War Crimes Tribunal is necessary, by all means make it so! The untold suffering of millions has been going on for years and the time has come for those who are responsible to be required to answer to the claims that TRUTH demands from each and every one of them.

  2. The pantry is full, tanks are full, PM are buried 12 paces due north from the old oak tree, living over 200 miles from any major city…., lets see now, did I miss anything? Oh yeah!!! Got a Bible, just in case that old relic happens to be more that a myth as many supposedly intelligent people claim. I guess I need to read Daniel and Revelation again so I can see if what is in there is actually coming to pass. You know, can’t buy or sell without some kind of a mark, some dude who is a economic whiz kid, a leader who conquers others without going to war, I think this has something to do with the Four Horsemen of the Apocalypse. Then there is the false prophet, the beast, and the antichrist…., dad-gum all this doesn’t sound good. And then there are the ones who will be beheaded because they would not compromise their principles….??….!! OK enough of this, I going to watch the Matrix again. Neo to the rescue!!

    • Scary stuff.  I hope this never happens.  I’m pretty new here and just started looking into this stuff a couple months ago – can someone explain how a QE3 is a bad thing?

  3. The structure of the monetary scheme GUARANTEES a system-wide failure. The sheer magnitude and rapidity of exponential currency and debt growth (16 Trillions ‘fed’ into banks across the world ‘charged’ to The People …, to mention nothing of Euro-zone and Chinese ‘infusions’ on the backs of THEIR Peoples) is the silent economic nuke detonation that everyone sees but doesn’t recognize for what it is. It’s the blinding explosion of the world’s currency scheme.
     
    My own suggestion is to research prices of common goods during the mid to near-late 1800s, when all money was metallic and those silver-centric prices had evolved to their most rational ideal. We’re going to be trading in metals again quite soon, so a fair apprehension of ‘real’ pricing will be an invaluable bit of ‘intelligence’ to guide our path forward.

  4. First time on the forum.  Love all the info.

    Isn’t the rush to declare the doom of Morgan Stanley a little far fetched?  I mean, people were clamoring to declare that JP Morgan will be going belly up at the end of July.  No one seems to be talking about that anymore.

  5. Otto 595   welcome to the forum  I think the reason MS is thought to be in failure mode is that its financials are a mess, stock price is down a lot and some top employees are selling stock and exiting the bank.  This is not a precise formula for determining of MS is going to fail but when we lost several major banks in 2008, each time the CEO and the government were talking trash about how strong the bank was, the top rats were planning their exit.  Many of the TBTF banks were still triple A rated until they closed.  Dexia bank, a Belgium bank, failed less than 2 months after it was rated AAA.  Dexia was 1.5 times the size of the Belgim GDP. Ouch!
    Another large bank CIF, was nationalize yesterday by Hollande and the French government.  It was struggling and given the final boot in the butt when Moody’s downgraded it to the fatal Caa1 rating.  It was the second largest mortgage banking firm in France.  I think it was kind of like Wacovia, AIG and FNMA all rolled into one  We’ll see the repercussions on Monday and if this sets off a bank run or more failures.  MS is just one of the biggest banks with the largest exposures to Euro debt, CDSs and derivatives   It is also pretty weak with an enterprise value of negative $200 billion and a debt to worth ratio that would make a billy goat puke.  If the Greeks tipped to default or another bank with substantial counterparty connections to MS went bust, this could kill the bank. 
    Besides which, all the other TBTF are like sharks circled the blood in the water.  Every one of these big banks would love to feast on the carcass of MS if for no other reason that they would buy assets on the cheap, probably avoid the debt of MS and shore up their own crappy financial house so that they could delay their day of reckoning.  To Big to Bail means the largest bank wins because they are now a part of the government and have to be propped up at any cost  JPM is one of those types.   September and October will be interesting months for the banking community.

  6. I have to ask the obvious question here — I don’t bank with MS.  They hold none of my notes or assets (that I’m aware of) so if they did crash, how would it affect me?  I’m sure there would be some residual effects… and it might be that they do hold some of my notes and I just don’t know it.  I’m curious as to how this will affect me.  I feel if businesses are irresponsible and have to close their doors, then that is what they need to do.  Are some suggesting that MS is too big to fail?  I think I’ve heard that line a time or two about other companies (AIG, GM, etc).

  7. Affirmative JJ83  MMA is money market account.  That is what my former banker LOL, Fidelity called them.   My words are unprintable.  But there is a move afoot by the Fed et al to limit the amount someone could remove from their own MMA in a financial crisis or run on  a bank.  I don’t recall the law or acronym but since the $2.7 trillion in MMAs are all that are holding the TBTF banks together, a run would destroy them   Watch what Spain does as the have lost about 20% of their bank account capital base through August to see what we will do  IMO

  8. I verified what I heard on the internet.  Morgan Stanley stock was $63.37 5 years ago (Aug 2007), now $14.80 — that’s -76.11%.  Citibank was $468.80 and now $29.65 for -93.68%.  B of A was $50.68 now $7.91 for a -84.39% and that’s with Warren Buffets money.  JPM is -17.12, HSBC (HBC) I guess in US is -51.83%.  Barclays is -76.11% and Goldman Sachs -40.50%.  The S&P is -5.05% for the same 5 year period.
     
    This is some serious losses in capital and they must have Mr. B feeding them a lot of green to keep the doors open.  It is going to get messy out there.  Hang on to your stuff.

    • @AGXIIK  I notice that ING and TD Ameritrade advertise on this site.  ING is sucking wind as they are down from $$40.67 to $7.18 in the past 5 years.  TD is only -7.44.  The volume has been down so much that these brokers are also having a hard time.  I had money in ING at one time and they are terrible.  Words cannot describe how badly they handled transactions so I left and went on this adventure.
       
      I actually thought the idea of going All In was to get off the grid.  Now I see all of these PM IRA’s popping up of course after I paid taxes on the money pulled out.  My whole belief system has changed the last couple of years as I learned what all the crooks are doing to us.  It is amazing how clueless the population is.  I live in a small town about 70 miles east of Pittsburgh and hope the collapse isn’t as bad here as the big cities will be a mess.
       
      It seems to me you have been at this for awhile.  Once I started looking for info it was everywhere.  The Fed has to be buying stocks as they rise when they really shouldn’t.  The Fed has pumped money like crazy here and Europe and with the volume so low it just baffles me why people can’t see this.  Oh well, I’m preaching to the choir.  The big sewer rats are definitely running for the weeds to get out of the way and make another fortune of course.

  9. Allin  I cashed out some of my IRA earlier this year and will take the tax hit. Then I did an SDIRA for me and my wife. I could not stomach paying 50% in taxes but I have to manage and monitor the SDIRA and it’s a narrow paper trail track.  That means I’m not off the grid due to this reporting.  But I did save a ton in taxes and the phyzz I bought from Doc is well buried. If the goon squad came looking for me I would sell that stack, take the hit and disappear. 

     The school of thought that one should take the tax hit by cashing in and buying phyzz on the cheap is sound.  I did a bit of both.   If PMs go up 100% you are still right where you were after the cash in tax hit.  Same dollar value and now your phyzz is totally off the grid. Anything more than a 100% bounce in price and you are on the good side of the trade.
    What’s more, ever since the complete and total corruption of the banking and central government was disclosed by Ann Barnhard, Jim Willie, Doc and Jim Sinclair,(I’m slow on the uptake) predestined inflation is cooked in the equation along with the corruption. If the government corrupts our meager stock of currency by criminal means then I fight back by means that only I will know.
    I seriously doubt if the IRS will ever see me again. KWIM?

    ING—haha—a big smelly overleveraged Eurobank destined for the boneyard.   They hold my mortgage too. I await the day they come begging to me to pay them off at 50% on the dollar.  I wish. 

    • AGIIK  It broke my heart to pay the tax but I wanted out.  I am absolutely convinced this stuff is going sky high.  The economics of PMs is rock solid.  There are way to many insanely wealthy metal guys just shaking their head at the debt bubble.  One of the questions I asked myself right before I went all in was — when was the last time I saw or heard of a coin dealer having financial problems running a legit business.  Zip, NADA, Zero so that gave me the final push.  So I see where this train is heading and I’m just in for the ride.  I wanted out and was tired with their corruption.  So let the games begin and thanks for the info.  ING will probably lose your paperwork when they go belly up just like Well Fargo with Wachovia.  It’s going to be a paperwork nightmare.  They probably won’t even call you and I think credit reporting will eventually be a historical event.  Take care.

  10. I’ve decided to cash out almost all of my IRA and will pay the 10% penalty for early withdrawal, since I won’t be 59 1/2 until Nov 2013.  I decided I just can’t wait.  I’m using some tax credits from prior years from real estate losses, so won’t have to pay much tax. I’m getting more phyzz now (next week), and other infrastructure items for my Kauai farm. I’m hunkering down in paradise, ready for the island to devolve further into 3rd world reality (not far to go).
    I figure silver will eventually rocket and will power whatever future might be in store for me.  This last withdrawal completes the draining of all bank accounts into cash, phyzz, and other basics.  It feels real good.  It’s taken a year to engineer. I stopped paying the hefty mortgage and we’ve got BofA tied up in knots with their faulty title transfers from Countrywide.  After 20 years in Hawaii, with squatters rights you get free title. 
    I’ve still got two gorgeous properties for sale, a nine acre piece with 1/4 mile stream (895k) , and a 5 acre ridgetop piece with live-in barn (649k).  All infrastructure is in, located an 8 minute walk down the road to our sandy beach.  No need for heating your home this winter. Cocos, banana, papaya, hunt your wild pigs on the property, head down to the beach for your luck with a fishing pole. Anybody interested to give me fiat now?   Will take phyzz too :)
    Don’t forget to bring your 30/30, as who knows what this place will devolve to once the boats and planes stop running.  Anyways, it’s my best shot and I’m here for the ride…

  11. @Hapa – ‘hunkering down in paradise’…sounds like you have it made.  I don’t think it likely you will regret your decision to withdraw your IRA early and pay a 10% penalty…particularly if silver achieves the levels I believe it will over the next few years.

    If you’re interested in using SD Bullion to source your metals purchase from your IRA withdrawal, I’ll make sure our bullion team gives you a great deal and makes it worth your while.

    -Doc

    • Thanks Doc and thanks for an excellent blog that is helping people to get motivated and understand PM and all that the paradigm entails. I am only recently signed on and am shocked more people aren’t aware of the opportunity. 

      As much as we can prepare ourselves, there are contingencies likely to come up that were never considered.  Oh well….we can only do the best we can and the chips will fall where they may.

      I’m not looking forward to the changes, but know that society has earned the wake up call many times over. I feel bad for those that have been living in ignorance, but we all seem to have our own karma

      All the best to you and yours in this great time of change…
       
       

  12. Hapa  
    The man says Kapu  
    You say F.U. 
    B of A
     go away. 
    The Garden Isle’s my favorite island.    Have fun.  It sounds like you got it wired.
    The last big silver spike took the price from $8 to $48 in roughly 3 years. 500%.
    That same factor would be good this time around. The Casey Chart says the next really big silver upleg could start in April 2013. I think his prediction is pessimistic in date and price but the math seems to check out.

  13. The only thing that I have in my bank account is only 20$ and I have to keep that 20$ because it is the minimum amount required in the account. The reason why I have a bank account is for my coin roll hunting.

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