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STARFIRE TOR
FUTURE EVENT PRECOGNITION
TIME SHIFT TIME ARC BEGINS NOW
2010 FUTURE EVENT PREDICTIONS
© Researched and Written By Starfire Tor
Posted December 31, 2009
http://blogs.myspace.com/starfiretor
http://www.starfiretor.com/FEP/2010Predictions12-31-2009Report.htm
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2010 PREDICTION #4 Results
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Initial Report
The financial DOW will go above 11,000, and may even possibly go over the 12,000 mark. I absolutely psi perceived the 11,000 number but only caught a wisp of the 12,000 number. These numbers do not realistically reflect a financial recovery for the innocent victims of financial devastation, brought on by the corruption and greed of others. While this is happening, a main ex bank - possibly Washington Mutual and another - is outed as engaging in major fraud involving its dealings with sub prime rates and loans. This evidence can either lead to the cleaning out of bank corruption, making sure it can never happen again, and getting lost finances back into the hands of the victims - or justice will not be served and the victims will experience more loss. Two roads for the Obama administration to choose. One leads to the road to financial recovery and stability, and the other doesn't and angers the people even more. Keep an eye on the Goldman Sachs situation and evidence of fraud. There are others.
Results
Commentary
The 2010 Prediction # 4 has multiple hits. On April 16, 2010 the Dow went above 11,000, which it had not done since September 26, 2008. It rose above 11,000 despite the fact that on May 6, 2010 the Dow Jones Industrial Average plunged by 998.50 points. It was called The Flash Crash. The Dow rose above 11, 000 again on October 8, 2010, and on December 31, 2010 the Dow closed at 11,577.51.
On April 12, 2010 the news broke that Washington Mutual bank had been investigated for their business practices. The Senate Panel said that WaMu was the biggest bank to ever fail because it didn’t curtail their deceptive practices. On November 22, 2010 it was announced that the Feds raided three hedge funds linked to a trading probe: Level Global Investors LP, Diamondback Capital Management LLC, and Loch Capital Management LLC. On April 16, 2010 it was announced that the S.E.C. filed a civil lawsuit against Goldman Sachs for securities fraud.
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News Reports
http://www.nyse.tv/dow-jones-industrial-average-history-djia.htm
The Dow Jones Industrial Average Closing Numbers
2008
September 26, 2008 11,143.13
October 3, 2008 10,325.38
October 10, 2008 8,451.19
October 17, 2008 8,852.22
October 24, 2008 8,378.95
October 31, 2008 9,325.01
November 7, 2008 8,943.81
November 14, 2008 8,497.31
November 21, 2008 8,046.42
November 28, 2008 8,829.04
December 5, 2008 8,635.42
December 12, 2008 8,629.68
December 19, 2008 8,579.11
December 26, 2008 8,515.552009
January 2, 2009 9,034.69
January 9, 2009 8,599.18
January 16, 2009 8,281.22
January 23, 2009 8,077.56
January 30, 2009 8,000.86
February 6, 2009 8,280.59
February 13, 2009 7,850.41
February 20, 2009 7,365.67
February 27, 2009 7,062.93
March 6, 2009 6,626.94
March 13, 2009 7,223.98
March 20, 2009 7,278.38
March 27, 2009 7,776.18
April 3, 2009 8,017.59
April 10, 2009 8,083.38
April 17, 2009 8,131.33
April 24, 2009 8,076.29
May 1, 2009 8,212.41
May 8, 2009 8,574.65
May 15, 2009 8,268.64
May 22, 2009 8,277.32
May 29, 2009 8,500.33
June 5, 2009 8,763.13
June 12, 2009 8,799.26
June 19, 2009 8,539.73
June 26, 2009 8,438.39
July 2, 2009 8,280.74
July 10, 2009 8,146.52
July 17, 2009 8,743.94
July 24, 2009 9,093.24
July 31, 2009 9,171.61
August 7, 2009 9,370.07
August 14, 2009 9,321.40
August 21, 2009 9,505.96
August 28, 2009 9,544.20
September 4, 2009 9,441.27
September 11, 2009 9,605.41
September 18, 2009 9,820.20
September 25, 2009 9,665.19
October 2, 2009 9,487.67
October 9, 2009 9,864.94
October 16, 2009 9,995.91
October 23, 2009 9,972.18
October 30, 2009 9,712.73
November 6, 2009 10,023.42
November 13, 2009 10,270.47
November 20, 2009 10,318.16
November 27, 2009 10,309.92
December 4, 2009 10,388.90
December 11, 2009 10,471.50
December 18, 2009 10,328.89
December 24, 2009 10,520.10
December 31, 2009 10,428.052010
January 8, 2010 10,618.19
January 15, 2010 10,609.65
January 22, 2010 10,172.98
January 29, 2010 10,067.33
February 6, 2010 10,012.23
February 12, 2010 10,099.14
February 19, 2010 10,402.35
February 26, 2010 10,325.26
March 5, 2010 10,566.20
March 12, 2010 10,624.69
March 19, 2010 10,741.98
March 26, 2010 10,850.36
April 2, 2010 10,927.07
April 9, 2010 10,997.35
April 16, 2010 11,018.66
April 23, 2010 11,204.28
April 30, 2010 11,008.61
May 6, 2010 10.520.00
May 7, 2010 10,380.43
May 14, 2010 10,620.16
May 21, 2010 10,193.39
May 28, 2010 10,136.63
June 4, 2010 9,931.97
June 11, 2010 10,211.07
June 18, 2010 10,450.64
June 25, 2010 10,143.81
July 2, 2010 9,686.48
July 9, 2010 10,198.03
July 16, 2010 10,097.90
July 23, 2010 10,424.62
July 30, 2010 10,465.94
August 6, 2010 10,653.56
August 13, 2010 10,303.15
August 20, 2010 10,213.62
August 27, 2010 10,150.65
September 3, 2010 10,447.93
September 10, 2010 10,462.77
September 17, 2010 10,607.85
September 24, 2010 10,860.26
October 1, 2010 10,829.68
October 8, 2010 11,006.48
October 15, 2010 11,062.78
October 22, 2010 11,132.56
October 29, 2010 11,118.49
November 5, 2010 11,444.08
November 12, 2010 11,192.58
November 19, 2010 11,203.55
November 26, 2010 11,092.00
December 3, 2010 11,382.09
December 10, 2010 11,410.32
December 17, 2010 11,491.91
December 24, 2010 11,573.49
December 31, 2010 11,577.51.
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http://www.ft.com/indepth/global-financial-crisis
The financial Crisis Of 2007–2010
The Financial TimesThe financial crisis of 2007–2010 is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It was triggered by a liquidity shortfall in the United States banking system, and has resulted in the collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market has also suffered, resulting in numerous evictions, foreclosures and prolonged vacancies. It contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions of U.S. dollars, substantial financial commitments incurred by governments, and a significant decline in economic activity.
The collapse of the U.S. housing bubble, which peaked in 2006, caused the values of securities tied to U.S. real estate pricing to plummet thereafter, damaging financial institutions globally. Questions regarding bank solvency, declines in credit availability, and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during late 2008 and early 2009. Governments and central banks responded with unprecedented fiscal stimulus, monetary policy expansion, and institutional bailouts.
Under the Obama Administration, the United States Congress responded to the financial crisis, in part, by creating the following acts and bills:
December 11, 2009 – The House cleared bill H.R.4173 - Wall Street Reform and Consumer Protection Act of 2009
April 15, 2010 – The Senate introduced bill S.3217 - Restoring American Financial Stability Act of 2010
July 21, 2010 - the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted.
During the early part of the 2010s, the Dow made a fairly notable rally attempt in the face of growing global concerns such as the 2010 European sovereign debt crisis and the Dubai debt crisis. Although for the most part just a political event, the Dow closed at the 10,785.89 level on March 22, 2010 following the passage of the landmark Patient Protection and Affordable Care Act in Washington. On May 6, 2010 the Dow Jones Industrial Average plunged by 998.50 points. The event later became known as the 2010 Flash Crash or the "Flash Crash". Although there was an immediate recovery, it was the biggest intra-day fall ever. This would have put the trading day as the fifth-worst market sell-off on a percentage basis as well. The Dow bottomed out at 9,869, and then recovered quickly, eventually ending at 10,520.32, a loss of 347.80 points or 3.2.
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http://www.cbsnews.com/stories/2010/04/12/business/main6389803.shtmlProbe Finds Fraud in WaMu Mortgage Lending
Senate Panel: Biggest Bank to Ever Fail Didn't Curtail Deceptive PracticesWASHINGTON, April 12, 2010 The Associated Press
(AP) The mortgage lending operations of Washington Mutual Inc., the biggest U.S. bank ever to fail, were threaded through with fraud, Senate investigators have found.
And the bank's own probes failed to stem the deceptive practices, the investigators said in a report on the 2008 failure of WaMu.
The panel said the bank's pay system rewarded loan officers for the volume and speed of the subprime mortgage loans they closed on. Extra bonuses even went to loan officers who overcharged borrowers on their loans or levied stiff penalties for prepayment, according to the report being released Tuesday by the investigative panel of the Senate Homeland Security and Governmental Affairs Committee.
Sen. Carl Levin, D-Mich., the chairman, said Monday the panel won't decide until after hearings this week whether to make a formal referral to the Justice Department for possible criminal prosecution. Justice, the FBI and the Securities and Exchange Commission opened investigations into Washington Mutual soon after its collapse in September 2008.
The report said the top WaMu producers, loan officers and sales executives who made high-risk loans or packaged them into securities for sale to Wall Street, were eligible for the bank's President's Club, with trips to swank resorts, such as to Maui in 2005.
Fueled by the housing boom, Seattle-based Washington Mutual's sales to investors of packaged subprime mortgage securities leapt from $2.5 billion in 2000 to $29 billion in 2006. The 119-year-old thrift, with $307 billion in assets, collapsed in September 2008. It was sold for $1.9 billion to JPMorgan Chase & Co. in a deal brokered by the Federal Deposit Insurance Corp.
Jennifer Zuccarelli, a spokeswoman for JPMorgan Chase, declined to comment on the subcommittee report.
WaMu was one of the biggest makers of so-called "option ARM" mortgages. These mortgages allowed borrowers to make payments so low that loan debt actually increased every month.
The Senate subcommittee investigated the Washington Mutual failure for a year and a half. It focused on the thrift as a case study for the financial crisis that brought the recession and the loss of jobs or homes for millions of Americans.
The panel is holding hearings Tuesday and Friday to take testimony from former senior executives of Washington Mutual, including ex-CEO Kerry Killinger, and former and current federal regulators.
Washington Mutual "was one of the worst," Levin told reporters Monday. "This was a Main Street bank that got taken in by these Wall Street profits that were offered to it."
The investors who bought the mortgage securities from Washington Mutual weren't informed of the fraudulent practices, the Senate investigators found. WaMu "dumped the polluted water" of toxic mortgage securities into the stream of the U.S. financial system, Levin said.
In some cases, sales associates in WaMu offices in California fabricated loan documents, cutting and pasting false names on borrowers' bank statements. The company's own probe in 2005, three years before the bank collapsed, found that two top producing offices - in Downey and Montebello, Calif. - had levels of fraud exceeding 58 percent and 83 percent of the loans. Employees violated the bank's policies on verifying borrowers' qualifications and reviewing loans.
Washington Mutual was repeatedly criticized over the years by its internal auditors and federal regulators for sloppy lending that resulted in high default rates by borrowers, according to the report. Violations were so serious that in 2007, Washington Mutual closed its big affiliate Long Beach Mortgage Co. as a separate entity and took over its subprime lending operations.
Senior executives of the bank were aware of the prevalence of fraud, the Senate investigators found.
In late 2006, Washington Mutual's primary regulator, the U.S. Office of Thrift Supervision, allowed the bank an additional year to comply with new, stricter guidelines for issuing subprime loans.
According to an internal bank e-mail cited in the report, Washington Mutual would have lost about a third of the volume of its subprime loans if it applied the stricter requirements.
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http://abcnews.go.com/Business/wireStory?id=12217865&tqkw=&tqshow=
Feds Raid 3 Hedge Funds Linked To Trading Probe
By Daniel Wagner And Larry Neumeister Associated Press
November 22, 2010http://news.yahoo.com/s/ap/20101123/ap_on_bi_ge/us_insider_trading_hedge_funds
WASHINGTON – The Federal Bureau of Investigation has raided three hedge funds in what one of the targets is calling a wide-ranging probe of insider trading in the financial industry.
Bureau employees searched the New York offices of Level Global Investors LP, and the Stamford, Conn. headquarters of Diamondback Capital Management LLC, a law enforcement official said. The official spoke on condition of anonymity because he was not authorized to discuss an ongoing case.
Another FBI official said the agency also searched a third site, at 30 Federal St. in Boston. Hedge fund Loch Capital Management LLC has its headquarters at that address.
The FBI said in a statement that it had executed search warrants in the three states "in an ongoing investigation." Agency spokesmen said they could not comment further because the court documents are under seal.
A spokesman for Level Global acknowledged the raid took place Monday.
"We can confirm that agents from the Federal Bureau of Investigation visited our offices this morning as part of what we believe to be a broader investigation," the spokesman said in a statement. "We are cooperating fully with the authorities and, at the same time, we are fully operational and continue to work diligently for the benefit of our investors."
Four men wearing overcoats and badges emerged late Monday from the Level Global offices in midtown Manhattan, pulling rolling suitcases behind them and carrying nylon backpacks. They declined to answer reporters' questions.In Stamford, security guards ordered journalists to leave the premises of the high-rise building housing the offices of Diamond Capital Management. Three men were seen leaving the building in an FBI vehicle on Monday evening.
The FBI and other law enforcement agencies are investigating insider trading by hedge funds, mutual funds and investment bankers, the Wall Street Journal reported this weekend. The companies allegedly earned tens of millions in illegal profits using secret information about mergers, according to the Journal.
Diamondback and Level Global both are run by former managers of SAC Capital Advisors LP, of Stamford. Diamondback manages about $4.71 billion, according to public filings. Level Global manages $3.09 billion, filings show.Loch Capital is run by brothers Timothy and Todd McSweeney. The brothers have been linked in news reports to hedge-fund manager Steven Fortuna. Fortuna pleaded guilty last year to charges stemming from an earlier insider trading investigation by the Securities and Exchange Commission.
Workers at Loch Capital declined to answer calls placed by a reporter through the office building's intercom on Monday. A worker at the building who declined to be identified said the McSweeney brothers left their offices at around noon and did not return.
The raids come a month after U.S. Attorney Preet Bharara in Manhattan told the New York City Bar Association that white-collar crime was on the rise, carried out by Wall Street heavyweights who consider inside information "a performance enhancing drug that provides the illegal 'edge' to outpace their rivals and make even more money."
Bharara said his office and the FBI had both recently added more resources to exposing insider trading and considered it a top criminal priority."Disturbingly, many of the people who are going to such lengths to obtain inside information for a trading advantage are already among the most advantaged, privileged, and wealthy insiders in modern finance," he said last month.
Diamondback portfolio manager Andrea Feinstein declined to comment about the search. A spokesman for the SEC did not respond to requests for comment.
Calls to Loch Capital were not returned. Leonard Pierce, a lawyer for the fund, did not return a call seeking comment.
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www.nytimes.com/2010/04/17/business/17goldman.html
http://www.nytimes.com/2010/04/17/business/17goldman.html
S.E.C. Accuses Goldman of Fraud in Housing Deal
By Louise Story and Gretchen Morgenson
Michael J. de la Merced contributed reporting.
Published: April 16, 2010Goldman Sachs the Wall Street powerhouse, was accused of securities fraud in a civil lawsuit filed Friday by the Securities and Exchange Commission, which claims the bank created and sold a mortgage investment that was secretly intended to fail.
The move was the first time that regulators had taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market.
The suit also named Fabrice Tourre, a vice president at Goldman who helped create and sell the investment.
In a statement, Goldman called the commission’s accusations “completely unfounded in law and fact” and said it would “vigorously contest them and defend the firm and its reputation.”
The focus of the S.E.C. case, an investment vehicle called Abacus 2007-AC1, was one of 25 such vehicles that Goldman created so the bank and some of its clients could bet against the housing market. Those deals, which were the subject of an article in The New York Times in December, initially protected Goldman from losses when the mortgage market disintegrated and later yielded profits for the bank.
As the Abacus portfolios in the S.E.C. case plunged in value, a prominent hedge fund manager made money from his bets against certain mortgage bonds, while investors lost more than $1 billion.
According to the complaint, Goldman created Abacus 2007-AC1 in February 2007 at the request of John A. Paulson, a prominent hedge fund manager who earned an estimated $3.7 billion in 2007 by correctly wagering that the housing bubble would burst. Mr. Paulson is not named in the suit.
Goldman told investors that the bonds would be chosen by an independent manager. In the case of Abacus 2007-AC1, however, Goldman let Mr. Paulson select mortgage bonds that he believed were most likely to lose value, according to the complaint.
Goldman then sold the package to investors like foreign banks, pension funds and insurance companies, which would profit only if the bonds gained value. The European banks IKB and ABN Amro and other investors lost more than $1 billion in the deal, the commission said.
“Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio,” Robert Khuzami, the director of the commission’s enforcement division, said in a written statement.
The lawsuit could be a sign of a revitalized Securities and Exchange Commission, which has been criticized for early missteps in assessing the causes of the financial crisis. The agency appears to be tracing the mortgage pipeline all the way from the companies like Countrywide Financial that originated home loans to the raucous trading floors that dominate Wall Street’s profit machine.
At a conference in New Orleans on Friday, Mr. Khuzami indicated that he was scrutinizing other deals involving mortgage securities. “We’re looking at a wide range of products,” he said at a news conference. “If we see securities with similar profiles, we’ll look at them closely.”
Shares of Goldman Sachs plunged more than 10 percent in just the first half-hour of trading after the suit was announced Friday morning. They closed down 13 percent, at $160.70, wiping away more than $10 billion of the company’s market value.
Investors sold other bank stocks, as well, as rumors swirled about which other firms might become embroiled in the commission’s investigation. Next to Goldman Sachs, Deutsche Bank’s American shares had the steepest decline, falling 7 percent.
Goldman issued a second statement after the market closed saying that the firm had lost money on the deal in the S.E.C. case and that it provided investors with extensive disclosure on the deal. The firm said the losses in the deal came from the overall collapse of the mortgage market, not from the way the deal was structured.
The accusations amount to a black eye for the once-untouchable Goldman Sachs, a money machine that is the epicenter of Wall Street power. For decades, its platinum reputation has attracted top investors and stock underwriting deals.
Several of its former chief executives have gone on to high public office, among them Henry M. Paulson Jr., the former Treasury secretary, and Jon Corzine, the former New Jersey governor. (Henry Paulson and John Paulson are not related.)
In recent months, Goldman has been defiant in the face of criticism, repeatedly defending its actions in the mortgage market, including its own bets against it. In a letter published last week in Goldman’s annual report, the bank rebutted criticism that it had created, and sold to its clients, mortgage-linked securities that it had little confidence in.
“We certainly did not know the future of the residential housing market in the first half of 2007 any more than we can predict the future of markets today,” Goldman wrote. “We also did not know whether the value of the instruments we sold would increase or decrease.”
The letter continued: “Although Goldman Sachs held various positions in residential mortgage-related products in 2007, our short positions were not a ‘bet against our clients.’ ” Instead, the trades were used to hedge other trading positions, the bank said.
Goldman was one of many Wall Street firms that created complex mortgage securities — known as synthetic collateralized debt obligations — as the housing wave was cresting. At the time, traders like Mr. Paulson, as well as those within Goldman, were looking for ways to bet against the overheated market.
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Initial 2010 Prediction Report
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