CNBC Stand-In Reporter Admits Financial System Changeover: “They’re Going to Put the Old System In a Coma”!

A good weekend indeed!

I guess we'd best enjoy it while we still can.

From the CNBC video:

Joe Kernen: We’re just seconds away from import price data for July, and Kevin Ferry is standing by at the CME in Chicago.

(To Kevin Ferry) Don’t screw this up because you don’t normally do it. Usually it’s Santelli. So whatever you do, don’t screw this up, Kevin.

Kevin Ferry: No pressure. Import prices down 0.6. that’s actually weak. We were looking for it to come back on to the high side after a big oil moved down last time. Small revision the Dow 2.4 from 2.7. Year over year you’re still looking at prices falling out of bed, Joe, down 3.2%, year over year. Wow.

JK: Also, when we were corresponding earlier, Kevin, you wanted me to ask you something that I didn’t really understand, that was compelling. What was that?

KF: Oh, well I was just noticing that there are Libor subpoenas raining down on the New York branches of these foreign banks today. So I think you really have to watch it. The BBA is now saying they are going to go into ‘overhaul’ mode. So as if we don’t have enough things going on, you’re going to start opening up a Pandora’s Box here in the Libor sector of the market.

JK: I see. So what would the implications be for Libor, do you think?

KF: Well, I think what they’re going to do, Joe, is basically put the old system in a coma, and work to devise something that’s a little bit better, and it’s going to be tricky. So ah, hey, I’m a Merck guy. I cut my teeth in the euro/dollar pit, but watch the new general collateral futures at the New York stock exchange. I think that’s where the interest is going to go.

Co-host Doug Dachille joins in:

DD: So what are they going to do with the euro/dollar futures and all the outstanding notion of principal of contracts linked to Libor? I mean is everybody going to convert their Libor interest rate swaps to cost of fund funds or Fed fund basis swaps or some other index?

KF: Are you asking me? I’ve asked that question as high as I could ask it and I get blank stares. So I don’t think you can violate the open interest in the contracts of over two decades.

DD: What I find fascinating is, we had somebody talking about oil earlier today. And everybody uniformly agrees that there’s market manipulation by a fairly strong cartel of people that have – in that case, that cartel has the exact same directional exposure to know that when prices go up, they all make money and when prices go down, they all lose money. But in the Libor space it’s not clear that every bank has exactly the same Libor exposure. so it’s not clear that that cartel in setting Libor and manipulating it, actually is as powerful as the cartel that manages oil prices. Yet I don’t hear any outrage of people routinely trading commodity derivatives and commodity futures, as much as I hear the outrage over euro/dollar futures and Libor-based interest rate swaps. Maybe it’s a perception thing, Everybody assumes that’s what goes on when you trade commodity futures, but nobody ever really thought that was going on when you were trading euro/dollar futures.

KF: Right, well let’s go out for a drink sometime. Laughs.

JK: I knew you guys would be, you’re like soul mates. I just got you started. Thank you, Kevin, Doug.

KF: Thank you, have a good weekend.

JK: OK, you, too.

Last Edited by G3 on 08/11/2012 09:00 PM

I can actually feel the noose getting tighter.

What does Shark Week mean?

Why do you think banks are beefing up security

Dont know how they expect anyone to want to play their rigged games anymore.

The AMERO...It is Real.

very real and sitting in the denver mint

I guessed it might be something like that.

Depends on who is the Shark.


I never like asking questions on twitter.

...and so it begins! The trigger is cocked and ready to be pulled for the global financial collapse!!!

So what's supposed to happen, a financial collapse of some kind?

kinda.

Its like this:

ON one had Im not scoffing, on the other, I'll believe it when I see it.

Ask the banks with living wills ... the grim reaper knows which ones.

For those that don't know, the Libor rates were manipulated by the big banks to help re-capitalize their balance sheets after the crash. This market manipulation is illegal (of course), but it was a clever (though devious) way of staying afloat...otherwise, the entire global banking system was soon to collapse. I know GLP is full of conspiracy stuff about a purposeful collapse, starving people, etc., but the truth is that the Phd's in investment banking outsmarted themselves, and now the entire system is unraveling behind the scenes. Not saying it is going to happen, but this actually has the potential to collapse our current way of life. At the least, in weeks or months, banks will be focused on nothing more than gathering capital (calling in loans), and you can forget about credit. In fact, if you want a conspiracy, imagine an emergency act whereby the banks force payment of credit card debt through wage garnishment. Whatever it takes to keep the banking system (and society) together.

also, when we were corresponding earlier, kevin, you wanted me to ask you something that i didn't really understand that was compelling. what was that? oh, well i was just noticing that there are libor subpoenas raining down on the new york branches of these foreign banks today, so i think you really have to watch the bba is now saying they are going to go into overhaul mode, so as if we don't have enough things going on, you're going to start opening up a pandora's box here in the libor sector of the market. i sigh see. what would the implications be for libor, do you think? well, i think what they're going to do, joe, is basically put the old system in a coma, and work to device something that's a little bit better and it's going to be tricky. i'm a merck guy. i cut my teeth in the euro/dollar pit but watch the new general collateral futures at the new york stock exchange, i think that's where the interest is going to go. so what are they going to do with the euro/dollar futures and all the outstanding notion of principal of contracts linked to libor? is everybody going to convert their libor interest rate swaps to cost of fund funds or fed fund basis swaps or some other index? are you asking me? i've asked that question as high as i could ask it and i get blank stares, so i don'tnk you can violate the open interest in the contracts of over two decades. what i find fascinating, we had somebody talking about oil earlier today and everybody uniformly agrees that there's market manipulation by a fairly strong cartel of people that have, in that case, that cartel ha the exact same directional exposure to know that when prices go up, they all make money and when prices go down, they all lose money. in the libor space it's not clear that every bank has exactly the same libor exposure. so it's not clear that that cartel in setting libor and manipulating it actually is as powerful as the cartel that manages oil prices yet i don't hear any outrage of people routinely trading commodity derivatives and commodity futures as much as i hear the outrage over euro/dollar futures and libor-based interest rate swaps. maybe it's a perception thing, everybody assumes that's what goes on when you trade commodity futures, but nobody ever really thought that was going on when you were trading euro/dollar futures. right, well let's go out for a drink sometime. i knew you guys would be, you're like soul mates. i just got you started. thank you, kevin, doug. thank you, have a good weekend. you, too.

A better result would be to put the people behind this scam into a coma.

With those last three sentences, you sound quite the evil banker, hmmmmmm

It won't go down like that. Anyone ever hear of the The Way of the Tao?

When the poop hits on this would having paper money àt home or a statment of whats in the bank best

When it fully unwinds how can the avg joe come out a winner

Will gold silver be thè best place to be

more like gubbmernte cover up and sealed information and bernake printing more adn more trillions.

The question really should be. When will the damm break from all the trillions and trillions being printed and hiding covering up the illegal manipulation to keep the evil system of the elite ivy leager and london banksters going.

tell ya one thing. we're gonna get screwed royally when it gets overhauled...

I haven't heard the Amero mentioned for quite a while....
I had almost forgotten about it tbh...

Well so far stock index futures are not under any negative pressure so I guess everything will be ok for tomorrow once the nyse opens.

Just to clarify: the video is limited to a changeover of LIBOR-related systems, not the entire financial system.