Jim Willie: Next Segregated Client Fund Theft Will Be Private Segregated STOCK ACCOUNTS!!

The Doc sat down with the Golden Jackass himself Monday for an exclusive MUST LISTEN interview.

Willie informed The Doc that it appears that Morgan Stanley was used by the cartel to prevent a collapse in treasury bonds in 2010, and believes that Morgan Stanley was set up at the time by cartel banks as the next major financial firm to fail.

Morgan Stanley put on $8 TRILLION in interest rate swaps in the first half of 2010.  I call them the designated hitter for Wall St.   Why wasn’t it JP Morgan, BOA, or Goldman Sachs?  My theory is simple: THEY EXPECTED LATER TO KILL MORGAN STANLEY!  Lehman Brothers was killed because they had huge mortgage bonds and other things that weren’t exactly desirable.  Bear Stearns was killed because they were pro gold and short the dollar.

Morgan Stanley created the false impression of a flight to safety in US treasury bonds.  Take a look at the 10 year yield early in 2010.  It was moving up to the 3.5% range! Alarm bells were going off!  They were talking about QE and bond monetization by the Fed! China was backing out of buying treasury bonds!  We had more supply, and less demand, and a rising 10 year yield.  Suddenly we had a tremendous ‘flight to safety’.  What a bunch of propaganda!

Willie also discusses reports from sources within MS that the firm’s veteran fund managers have been selling long-term stock positions, and states that whether it is MS or another brokerage, the next step in the chain of segregated client fund thefts will be the theft of PRIVATE SEGREGATED STOCK ACCOUNTS!

 

Jim Willie began the interview by discussing market rumors regarding troubles at Morgan Stanley:

One of my source’s father is a fund manager at Morgan Stanley.  The word that I have heard is that ‘everything is going to hell.’
Morgan Stanley has big problems with their liquidity and insolvency.  They are having problems with antiquated software from Smith-Barney era.  He said that there are many long-standing veterans at Morgan Stanley who are SELLING ALL OF THEIR STOCK BECAUSE THE VETERANS EXPECT MORGAN STANLEY TO BE THE NEXT LEHMAN BROTHERS AND TO FAIL SOON!

Morgan Stanley is one of the largest brokerage houses in the US.   Several years ago they merged with Dean Witter.  They also merged with Smith-Barney. If you take their 7,500 brokers, and 200 accounts per broker, that’s 3.5 million accounts.

We’ve had MFGlobal erupt last Oct 31st.  PFGBest collapsed earlier this summer.  We’ve had a court ruling from the Sentinel management fun- a case from 2007- the court actually ruled that since they couldn’t prove malicious intent and motive to deceive and to steal, all those segregated private accounts have indeed been lost, and there’s nothing illegal about the action.

We’ve got all these cases where the courts are basically saying Doc that private accounts, even if they’re segregated, in brokerage firms can vanish.  The billboard is very clear.  Private accounts, even though segregated, CAN BE STOLEN!

The courts are saying these accounts aren’t segregated and should not be first in line, even though they are segregated!

The Doc asked whether the rehypothecation issues could escalate from futures accounts to brokerage accounts and deposit accounts:

That’s where I think we are going.  There is a chain of priority- it’s like an upside down pyramid. The most risky brokerage accounts are futures accounts.  We’ve seen futures accounts lost with MF Global and PFG.  They have stolen segregated accounts.  Next in the chain is private segregated stock accounts.
Unless and until the public sees private segregated stock accounts vanish at a giant conglomerate firm like Morgan Stanley, they will not wake up!

No one is protesting against these big banks for stealing from these segregated futures accounts.  It’s because they’re futures accounts!  The point is they’re segregated private accounts, and in bankruptcy law they are 1st in line during bankruptcies!!

This is very big, and I expect we’re going to see a jump into private brokerage accounts. It doesn’t look like it’s going to be Merrill Lynch, it looks like it could be Morgan Stanley.  If a brokerage firm like Morgan Stanley goes to dust and customers have no access to their accounts, I’m expecting some of the private segregated accounts are going to go missing.
That’s how the public wakes up.

 

The Golden Jackass states that the cartel used Morgan Stanley to control the 10 year rate in 2010 using $8 Trillion in interest rate swaps and that MS is being set up as the next firm to fail by Goldman and JPM:

 

If you look at the office of the comptroller of the currency, you will see reports issued quarterly.  In late 2010, these OCC reports on the derivatives showed that the big 4 banks were loaded with derivatives, but one stuck out- Morgan Stanley.

Morgan Stanley put on $8 TRILLION in interest rate swaps in the first half of 2010.  I call them the designated hitter for Wall St.   Why wasn’t it JP Morgan, BOA, or Goldman Sachs?  My theory is simple: THEY EXPECTED LATER TO KILL MORGAN STANLEY!  Lehman Brothers was killed because they had huge mortgage bonds and other things that weren’t exactly desirable.  Bear Stearns was killed because they were pro gold and short the dollar.

Morgan Stanley created the false impression of a flight to safety in US treasury bonds.  Take a look at the 10 year yield early in 2010.  It was moving up to the 3.5% range! Alarm bells were going off!  They were talking about QE and bond monetization by the Fed! China was backing out of buying treasury bonds!  We had more supply, and less demand, and a rising 10 year yield.  Suddenly we had a tremendous ‘flight to safety’.  What a bunch of propaganda!

The OCC report’s report which reveals Morgan Stanley’s activity of $8 trillion in interest rate swaps, during the exact 6 month period that the 10 year yield went from 3.5% to 2%!
This made history!  They called it a flight to safety!  This during a period of growing debt and shrinking buyers!  I believe Morgan Stanley was set up as the next Wall Street firm to fail!

When this all happens, it’s going to get ugly, and it’s going to get uncontrollable!  Like the Tower of Babel, the interest rate swaps tower is destabilizing, and it becomes more unstable whenever the 10 year makes a sharp move.  The 10 year recently dropped below 1.4%, and has now spiked back to 1.7%.  The 10 year’s move from 1.7% to 2.4% early in 2012 was the real cause of JP Morgan’s ICD9 losses which JPM blamed on bad European derivatives bets.

The bank’s entire system is to support the treasury bonds using the artificial demand of interest rate swaps!  There is no actual buyer at all!  It’s not the Chinese, it’s not the Japanese, it’s not the Russians, it’s not the Koreans, there are no buyers!
The only demand for treasuries are interest rate swaps creating false, artificial demand, and the IR swaps are what have caused the 10 year rallies and the ‘flight to safety’.

My sources tell me an entity from the East has sabotaged JP Morgan’s IR swap machinery.  It will break and will not stop in it’s deterioration until it’s completely broken.  It’s not stoppable!  It’s coming apart at the seams!
The European government bonds are showing that they’re broken by going to 7%.
The US bonds are showing they’re broken by going to 1.5%!

 

Jim Willie also discusses the recent massive movement of over 6,000 metric tons of gold Eastward, and makes the case that allocated private gold accounts are being improperly used by cartel banks to meet margin calls.
He also states THE WINDOW FOR ACQUIRING PHYSICAL GOLD AND SILVER IS RAPIDLY CLOSING, and that PHYSICAL METALS MAY BE UNATTAINABLE IN ANOTHER 3-4 MONTHS!!!


You won’t want to miss this or any of the rest of Jim Willie’s SHOCKING & EXPLOSIVE FULL INTERVIEW which will be released Wednesday morning!