The head of “The President’s Working Group on Financial Markets,” Brian Sack resigned.

Ben Bernanke attended a secret banker luncheon in NYC. Besides Bernanke, attendees were Jamie Dimon (JPM), Bob Diamond (Barkleys), Brady Dougan (Credit Suisse), Larry Fink (Blackrock), Gerald Hassell (Bank of NY Mellon) Glenn Hutchins (Silver Lake).

On last Tuesday, 600 million ounces of paper silver were dumped in the market in one hour. That is 80% of production for one year worldwide. Now that the banks have cut a $26 billion deal with State AG’s, they can go right back to robo signing. They will now start to work on defaults in homes worth $500,000 or more. The banking fraud is ongoing and the upper end of the market will suffer. The rule of law is history.

There will be and there has to be a QE 3, otherwise the system does not survive.