NEWS AND VIEWS FROM THE NEFARIUM JULY 20 2017

Play

Yet another bank experiences "downtime", stranding 46,000,000 of its "customers", and a Spanish banker is dead of a shotgun blast to the chest, which (note wording) they have "ruled out a homicide. and Joseph has another hare-brained bit of high octane speculation to add to his list of high octane speculations about it:

Nationwide Outage Hits Bank of America: Customers Unable To Access Accounts

Notorious Spanish Banker Found Dead With Shotgun Blast To The Chest

11 thoughts on “NEWS AND VIEWS FROM THE NEFARIUM JULY 20 2017”

  1. Respectful disagreement again. This time your points – that the banks could have done it and the possible connections, are irrelevent.

    I suppose this is a tale out f school but I’ve said it all before. My sister who died in 1996 married a Nigerian. She left 2 sons and a daughter who now divides her time between LA and South Africa (where she works on education issues). I’m also, as an Open Source kinda guy interested in projects such as Tupi – one of many open source projects out of Brazil and, partly through the Paul Winter Consort partly through Cape Verdean musicians like Bau, Mayra Andrade and Cesaria Evora, increasingly I’m into Brazilian songwriters such as Ivan Lins (give velho Sermao a chance) and Baden-Powell.

    So yesterday I got an email, purportedly from my niece’s yahoo account but attached to a server called projetosaofrancisco.com.br (in brazil in other words). Projeto Sao Francisco is about river relocation. She isn’t. I asked her and her sister in-law about it and she said “I’ve been hacked”. My answer to her was “If you have no connection to projeto sao francisco you’ve just been spoofed. They may or may not have been hacked. Since on the Internet nobody knows you’re a dog anyone can pretend to be you me your mother or the POTUS and there is nothing we can do about it.” Maybe tactless and I know years ago I was hacked so yeah.

    But that brings me back to the point. Our tools are so insanely powerful that yes, stupid people can do a lot of harm. I don’t believe it’s hackers OR AIs except I still believe what they call AI is still essentially a grammar for faking intelligence which is already being abused because it is incapable of many of the choices people are assigning it.

    So I’ll just say your conspiratorial view underestimates, in my mind, both the number of actors around and how much long-range planning is behind this. Be well.

  2. Robert Barricklow

    Their signature Crisis By Design signature is writ large once again. No doubt a floating cloud crisis that is nowhere ending in its impending weathering crashes by design.
    Expect Spain to be thrown into the Greece frying pan to serve up some plumb public assets to the derivative bankers spawning these scenarios to bring down the public spheres of influence.

  3. A main thing I enjoyed in this blog was the pleasure Joseph exhibited in reading-out the Comments. It was good to see him in happy mode…

    One thing about the derivatives Joseph mentioned is that they have not gone away. Who would buy a product where the backing-material was worth less than when the product originated? The only (legitimate) way to ‘move the paper’ is to have the backing-asset move at least to on-par with the day it was issued.

    I submit that this is what we are seeing with the present housing market. Through scarcity (few new houses being built in the last decade), residential pricing has been pumped-up to 2007-2008 levels. The derivatives are now worth the paper they are written-on. Saleable…

    Given this, we are likely at the crest of a new pump-and-dump cycle. Those toxic derivatives are no longer toxic – in this moment. I expect that they are being shopped-around as assets, once more. In fact, I expect that they are being Pushed. Somewhat desperately.

    When the next unraveling occurs (with housing back to being overpriced and unaffordable), those derivatives will go back to being toxic. But, they will be in the hands of some new victims…

  4. marcos toledo

    What didn’t the suicded banker have a handgun? As for the bank’s shut down maybe, the AI was too busy playing monopoly among themselves to process accounts at the banks.

  5. While my longer comment marinates in moderation, I’ll just note that Hemingway blew his brains out with a shotgun, so it IS possible. However, he worked out a way to brace the gun and pull the trigger without using a finger; I don’t recall offhand how he did it but I assume it was a length of twine or a wire.

  6. Bonus points for referencing ZH’s comments section, which is fascinating reading and far more illuminating than any of its articles — the collective wisdom and collective train of thought on thorny topics is really top notch. And of curse you have a host of disaffected traders and financial types who know the industry inside and out.

    I think these flash crashes are mainly caused by code-spaghetti algos that should not be dignified by the resonant and slightly foreboding title of AI but rather are nowhere approaching its imputed omniscience, rather just high-level, multi-layered hack jobs meant to take advantage of small market fluctuations by front-running and leading trades. They pile on and get into feedback loops that simply drive the numbers over the cliff every now and then, and when that happens the big boys take advantage of the downtime to play the float, as you pointed out. Underlying all that hustling for every last nanosecond of profit is the macro fact that the markets are so massively rigged and manipulated that they are no longer tethered t any underlying financial reality and so the algos are playing in the financial equivalent of virtual reality — it’s all fake, and the programmers are scripting in the fakeness and attempting to ensure that the fakeness never even references what used to be called market fundamentals. In other words, Wall Street has moved into how many quadrillions can balance on the tip of a pin territory, totally untethered from any underlying reality, so of course if you’ve gone off on this uncharted tangent there will be numerous crashes as the fakeness reaches the limits of the credible, which it already has long since surpassed. Wall Street is in the aether now and the whole ramshackle Goldbergian algo-driven contraption is wheezing at the seams from the lack of oxygen.

  7. Banks………………huh………..if there was ever was a group of crooks “who get away with it” it’s them. Just ask any of the Rottenchild family.

  8. walter sikora

    Thank you Joeseph for your incisive comments. You are my best source of news. I am broke now (the banksters got $7000 bucks from me in the last crash) but when my blue moon turns to gold again I”m gonna buy some of your books . . .

  9. Referencing the discussion on AI in the lastest Dialogue, we can at the very least say that AI does not (yet) pull triggers or push people out off skyscrapers.

Comments are closed.