Cara Community

Morning Call [6:55am ET] Greek bank shares are getting hammered, and so too are bank shares across Europe. Could Greece be Lehman Bros v.2? According to zerohedge.com’s Tyler Durden, the money flowing out of Greece since November constitutes a bank run.

http://www.zerohedge.com/article/run-greece-here-investors-pull-out-€10-billion-troubled-country-crisis-escalation-here

I let the share prices tell me the story, and this morning Greece is the largest blip on the radar screen. Whether or not that continues, we’ll have to monitor the situation closely.

Morning Call [6:21am ET] The first hour and the last in yesterday’s trading session in New York were the worst of the day. During the evening and early morning today, the damage has spread. On every battlefield you look, from Tokyo, Seoul, Shanghai, Hong Kong, Sydney, Singapore, Mumbai, and now (at least to this point) to London, Frankfurt, and Paris, the results are apparent; the average seems to be that for every 100 soldiers, 78 are down or wounded, seven missing, and 15 still vertical. You can smell the black powder. This is war.

Morning Call [6:58am ET] Because the capital losses we take are so frequent and hurtful, traders have a psychological need to pat themselves on the back occasionally when things go as planned. Today I will give you the anatomy of a single trade, done behind the scenes while the rest of you were listening to me say something about operating like a surgeon, calling a small bounce in $GOLD and pullback in the $USD.

Leading up to the trade, you read the following words in my Morning Call:

Thursday Jan. 28 (7:31am ET) /

Remember; we trade prices, not stories.

Morning Call [7:55am ET] The Davos Conference was summed up nicely by News Corp’s sister companies, The Times and Wall St Journal, in stating: (i) bankers don’t get it, and (ii) how low can the Dollar go to continue flooding US taxpayer money into emerging economies in the hopeful pursuit of ‘Monkey See, Monkey Do’?

http://online.wsj.com/article/SB4000142405274870410720457503901397884223...

Morning Call [7:57am ET] The biggest auditor of the biggest banks in the world, with over $1 trillion equity invested, is PricewaterhouseCoopers. Looking down their list of clients, with almost half of the top 15, I think 'too big to audit' should be the issue.

Rather than obtaining testimony this week just from Paul Volcker (today) and a few CEO’s of the largest banks (Thursday), I think the public also needs to hear from the independent auditors.

PwC’s preeminent client list:
• JP Morgan Chase 156.17B, world’s largest bank