* Bond Fund manager and Freddie/Fannie-guaranteed mortgage holder Bill Gross advocated the Freddie/Fannie bailout. He has recently suggested government should 100% nationalize Freddie and Fannie, and allow everybody to refinance at a lower rate.

* Bill Gross argued this would stimulate consumer spending and thereby the economy. Of course, what our economy needs is more savings, not spending.

* Real Estate prices are still too high and should never have been propped up. They need to come down. Artificially high prices for homes deprive more productive endeavors of resources.

* Do not buy Government Motors IPO. Some profit might be made by those with good timing, but they will go bankrupt again. The bailout prevent the restructuring they needed. They company is not run to produce good cars at a profit. It is run to serve labor.

* Dollar strengthens despite bad news based on weakness in stocks. Old habits (like buying dollars on bad news) die hard.

* Congressional Budget Office increases deficit estimate, but the estimate remains complete bullshit. Nothing to do with reality.

* Big Media (Robert Reich) continues to sing the praises of debt, and demonize saving.

* Peter’s predictions about Freddie and Fannie come true.

* Refinancing homes at (artificially suppressed) lower rates is creating a ticking time bomb for banks who will be holding 30-year paper. Once the paper becomes worthless there will be rampant bank failures.

* NY Times publishes BS article about why we won’t have a recession. Sheer propaganda. The implicit argument is that a zero Fed rate will avoid a recession. This is nonsense.

* Bonds remain overpriced, as Americans who attempt to save decide to lend money to the government. Inflation will punish bond-buyers.

* A better scheme for unemployment benefits would be an initial lump sum. This would avoid the disincentive to work. Of course, we’d all be better off if people decided for themselves whether or not to buy unemployment benefits, creating a market for various flavors of unemployment insurance.

* Peter has bet against the advice he gives. If the government actually followed his advice, it would undermine his investments.

* The sooner the crash happens, the better, because the longer the malinvestment persists, the more effort it will take for the economy to restructure.

* Dollar continues to decline.
* US continues to follow misguided Keynesian stimulus philosophy.
* GM (government motors) spends bailout money to buy sub-prime-like auto loan business.
* GM bailout was actually bailout of auto workers union.
* The most interesting part of this video begins at 6:00. He talks about how Goldline, a gold selling company, has abused customers by selling overprices antique coins. Peter predicts that this will be leveraged to attack all gold dealers. Remember, tyrants have always hated gold.

* 7th week in a row of declining value of the dollar.
* Propagandists say that the U.S. will not be like Japan. Peter argees only in a perverse way: the U.S. will suffer much, much more than Japan did in the 80’s.
* GDP is bullshit. It’s recent increase is completely attributable to debt and deficit spending.
* Politicians claiming credit for the abomination that was the auto bailout. They will need another bailout soon.
* The 2008 crisis was a UNITED STATES crisis. The world was exposed to it because they had loaned us so much money, but don’t believe the propaganda of the U.S. getting caught up in a world crisis.
* Expect people to begin fleeing the dollar, and U.S. assets. Expect gold to make another run, despite some talking heads claiming that it’s about to crash.
* No sign of a stricter Federal Reserve. As November elections approach, all incumbent politicians will fight for more easy money — which will be like drinking more booze to avoid a hangover.

Edit — more on China and the Yuan:

* China would never admit to being worried about currencies.
* US eager to bailout Greece b/c it is eager to reassure sovereign debt holders.
* US much worse off compared to EU as a whole.
* This is an ongoing depression which is currently interrupted by deficit spending (making things worse).
* Next crisis will be a flight FROM the dollar. Current anti-euro sentiment will be reversed. Carnage in bond markets.

Jump to 5:10 for the foreign brokerage issue.

I would add one point to his analysis: The rioters in Greece are public sector workers — those who over generations have been taught to rely on government. The free market participants (businesses) will suffer the austerity package’s tax increases, but not its restrictions on government salaries.

The longer Andrew Maguire interview they reference is here.

Also,

CFTC whistleblower injured in London hit-and-run
A London trader walks the CFTC through a silver manipulation in advance