Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Tues 01.12.2009
America slides deeper into depression as Wall Street revels December was the worst month for US unemployment since the Great Recession began. The labour force contracted by 661,000. This did not show up in the headline jobless rate because so many Americans dropped out of the system. The broad U6 category of unemployment rose to 17.3pc. That is the one that matters. Wall Street rallied. Bulls hope that weak jobs data will postpone monetary tightening: a silver lining in every catastrophe, or perhaps a further exhibit of market infantilism.
Coastal Federal closing branches Raleigh-based Coastal Federal Credit Union is closing its three branches in the Charlotte area plus a branch in Garner. The four branches are scheduled to shut their doors for good Feb. 26. That will leave Coastal Federal with 15 branches, all of them in the Triangle, said spokesman Joe Mecca. Coastal Federal decided to pull out of the Charlotte area because it has a relatively small membership base there -- 12,000-plus out of a total of 195,000 members -- and the competition is intense, said Mecca.
Survivor, America: "It's Only Going to Get Worse," Gerald Celente Says "It's only going to get worse," is the sobering forecast of Gerald Celente, director of the Trends Research Institute. As discussed in a prior segment, Celente believes the "bailout bubble" is going to burst and the U.S. economy will slip back into recession, if not worse, in 2010.
No Seat for Wall Street at Tea Party Could all those populist pitchforks currently pointed at Washington be turned toward Wall Street instead? That's the question that ought to worry Wall Street executives as they prepare to pay themselves nice bonuses this month, hard on the heels of a government bailout of the financial system, and amid continuing job losses around the rest of the country. Financial firms know they're in for heat on bonuses; they've already been chastised on national TV by President Barack Obama's chief economist.
Wall Street, politicians still don't get it The gamblers and the clueless are leading this nation into the abyss. If only we could throw out all of them There were many lists made of the "best" and "worst" of 2009. List-makers did themselves proud ticking off item after item.
Forecast 2010 - 2015: An Introduction I am in the midst of preparing a forecast for the next five to ten years for the United States economy, and by extension the world because of the intertwining effects of the dollar reserve currency and US consumption in the global economy. And of course the US position as the world's sole superpower.
National Debt- How Much Is A Billion Dollars? Dave Walker
Federal Reserve Seeks to Protect U.S. Bailout Secrets The Federal Reserve asked a U.S. appeals court to block a ruling that for the first time would force the central bank to reveal secret identities of financial firms that might have collapsed without the largest government bailout in U.S. history.
Why the Fed Likes Independence Ron Paul Last week it was revealed that when Treasury Secretary Tim Geithner was Chairman of the New York Federal Reserve, he urged AIG officials not to disclose to the Securities Exchange Commission relevant details of agreements with banks to bail out Goldman Sachs. Apparently he felt at the time that regulators and the public would be angry that taxpayer money was used to fully compensate bankers who made some horrifically bad investment decisions.
Gold rises as rates outlook sinks dollar Gold futures rose Monday, boosted by a report of strong Chinese imports data and after a Federal Reserve official emphasized that U.S. interest rates are likely to stay low, pressuring the dollar.
Gold Rises Above $1160 On Reflation Elation Risk is brisk on Monday morning as traders try and jump on a speeding freight train. Chinese export data over the weekend helped light the fuse while prospects for a sustained low-interest rate environment in the US after Friday’s employment report added powder to keg.
Market Meltdowns, Inflation, Protecting Capital & Trading Commodities The purpose in owning commodities like gold, silver and oil is to protect oneself from the effect of inflation that I believe will begin to assert itself in the coming months. Unfortunately, the United States has taken a monetary policy of printing massive amounts of money to attempt an escape of deflation. In just the past 16 months, the monetary base has ballooned from $908 billion to $2.0 trillion.
Gold Touches Five Week High, Silver And Platinum Gain Besides lifting crude oil, China's import and export update also gave a boost to precious metal prices by triggering fund buying, boosting demand and driving gold to a five week high of US$1,156/oz, while silver and platinum reached US$18.81/oz and US$1,590/oz.
Considering the Purchase of Foreign Gold Coins When planning a vacation, there are all sorts of questions one must ask. Where would I like to go? How long do I want to stay there? Where will I stay? What will I do while I'm there? How do I plan my itinerary? Which airline is most reliable? How will I get about once there? Will I travel by taxi, bus, or walk? Will I be able to deal with any language barriers? Will anyone there speak English? Do I need to learn the basics of a foreign language first? How do I ensure I get the best prices?
Gold: A “Bridge over Troubled Water” Back in 1969, when Simon & Garfunkel recorded “Bridge over Troubled Water” the duo had a gut feeling that this song was going to make a very big splash. And they were right, as their recording went on to become a number-one hit (staying atop the charts for six weeks) – while being covered by literally dozens of other singers.
Gold Outlook for 2010: Gold Resuming its Historical Monetary Role – as the Anti-Currency Lately the pace of gold-related news has accelerated exponentially with gold’s rising price. While 2009 was an exciting year for gold, setting a new average high of $1,088, 2010 promises to be even more exciting. In 2009 gold resumed its historical monetary role - as the anti-currency. Therefore, the influences and events that affect its price are not simple commodity supply/demand fundamentals, but the more complex global monetary issues.
GATA is sewing the Fed On the Edge with Max Keiser . . . and Chris Powell
Gold May Extend Advance to One-Month High After Dollar Declines Gold, trading little changed in Asia, may reach its highest level in more than a month as a weaker dollar helps fuel demand for the precious metal. The U.S. currency fell to its lowest in three weeks against the euro yesterday on speculation the Federal Reserve will keep interest rates low to spur a recovery in the world’s largest economy. Gold typically moves inversely to the dollar.
How far can China push up gold prices? China has now become a decisive factor not only in industrial metals but also precious metals. It is all set to over take India in gold consumption. China’s gold consumption in 2009 has now been estimated at 450 tonnes,according to latest available data. This exceeds estimates for India’s net consumption last year, which is forecast at around 380 tonnes, according to the Bombay Bullion Association. Due to soaring gold prices, demand for gold in India plummeted while that of China rose 13.5% in 2009.
What Does The Recent Weakness in the USD Index Mean For Precious Metals Investors? During the past week we've sent a Market Alert to our Subscribers, in which we commented on the current developments on the precious metals market, and indicated what action appears to be profitable under those conditions, and in the following essay we would like to elaborate on one of the points raised in that particular message.
Why gold is currency and inflation hedge Too much is written about gold these days simply because the yellow metal price has been on a steady rise for the last one year. When gold touched $800 per ounce in January 2009, investors and gold bugs applauded, hailing the precious metal as the best investment asset that people should hold and continue to own.
Currency Crisis Will Drive Gold We have a really big flightless bird Down Under called the Emu. I will not draw absolute parallels between the European Monetary Union (EMU) and the Emu, even in jest, however the Euro looks like it will appear flightless at best this year. Perhaps the myth that they (Emu’s) bury their head in the sand when facing danger may come true for the EMU this year however don’t count on it. Dire monetary events may force a change of heart and a dose of reality.
Centamin starts Egypt gold exports Centamin Egypt said it had started commercial production at its flagship gold mine at Sukari in the North African country and made its first exports of the metal. Centamin is now Egypt's first gold exporter for decades. The start of an unspecified amount of gold exports to refining group Johnson Matthey coincided with the full optimisation of its processing facility, which can now handle 4 m tonnes of ore a year. Centamin expects to produce more than 200,000 oz in 2010, 300,000 ounces in 2011 and aims to reach 500,000 ounces by 2012.
Dollar Drops Most Since November on Fed Outlook After Payrolls The dollar posted its biggest drop against the euro since November on increased speculation that the Federal Reserve may extend stimulus measures after a report showed last week that employers unexpectedly cut jobs.
Bubble Dynamics In 2010 If asked the question, most ‘financial experts’ would likely tell you the possibility of a return to extreme bubble dynamics in stocks during 2010 is the most unlikely possibility, not after all the ones during the last decade. Besides the possibility of deflation Prechter and the likes sell to a public that sees the risks, which are in fact very real, because this is widely known and being countered by central authorities, a risk of opposites must also be considered – or so the charts tell us.
Peter Schiff on CNBC 06 January 2010
Geithner Has Support of Obama, Democratic Lawmakers, Aides Say Treasury Secretary Timothy Geithner retains the confidence of President Barack Obama as he faces questions about why the Federal Reserve Bank of New York tried to withhold details of the government’s financial-industry rescue, administration officials said.
Obama to target banks with new levy The Obama administration is planning to impose a new levy on top US banks, to pay for the financial bail-out as part of the budget to be presented in February. The surcharge will aim to recoup the full cost of the Tarp bail-out fund, which the administration estimates at $120bn, although officials expect the ultimate cost will be less than $100bn.
Obama Administration Mulls New Bank Tax By some measures, the U.S. government has already made a tidy profit on a part of its TARP investment in the financial industry. Of a total of around $364 billion invested so far, the U.S. Treasury has made profits totaling $16 billion in dividends and the sale of warrants, among other things. Several large and small banks, including JP Morgan Chase and Bank of America, have repaid the government in full for a total of $164 billion.
US regulators scrutinise banks’ hires US banking supervisors are taking a much more active hand in shaping banks’ top personnel decisions, as regulators seek to prevent a recurrence of management failures that helped precipitate the financial crisis. Bankers, their advisers and government regulators told the Financial Times that supervisors at the Federal Reserve Board and the Federal Deposit Insurance Corporation are asking more questions about potential appointees than they did two years ago.
Here Comes the Screw Job "The 401(k) system has to be fixed, and I don't know anybody who can fix it but the federal government." - John Bogle Late last week the federal government began floating proposals for reforming America's broken retirement system. The proposed reform centers around the idea of getting people to invest more conservatively and withdraw the money more slowly so that they don't outlive their savings.
TrimTabs suggests government manipulated stocks Analysts say government's financial rescues have fueled conspiracy theories The unusual circumstances that led the U.S. market to rally powerfully in 2009 might be explained by secret government moves to buy stocks, according to Charles Biderman, the founder and chief executive of TrimTabs, a research firm that tracks liquidity flows in the market. "We cannot identify the source of the new money that pushed stock prices up so far so fast," Biderman said in a statement Tuesday.
SEC expands charges against BofA SEC expands charges against Bank of America, saying it failed to disclose losses at Merrill Federal regulators have expanded their charges against Bank of America Corp. over billions in bonuses paid at Merrill Lynch, accusing the bank of failing to disclose mounting losses at Merrill before a shareholder vote approving the combination of the two firms.
U.S. Bankers Are Fed Up With British Regulations LONDON — A tough new requirement by Britain’s securities regulator that top banking executives and earners must defer 60 percent of their total compensation for a three-year period is pushing some American banks with extensive London operations to say that they just won’t take it anymore.
Things Fall Apart in Eurozone As fears of a dollar meltdown have loomed ever larger in recent years, major investors, including central banks, have moved significant portions of their cash reserves into the euro, the currency of the European Union (EU). And while it is true that the euro offers some shelter from the American economic catastrophe, the currency does come with baggage that investors should not ignore.
1/3: Bankstergate: Geithners Cover-up of the AIG Bailout!!
2/3: Bankstergate: Geithners Cover-up of the AIG Bailout!!
3/3: Bankstergate: Geithners Cover-up of the AIG Bailout!!
Treasuries Advance as Asian Stocks Decline, Fed Rate on Hold Treasuries rose as Asian stocks fell and Australia said home-loan approvals declined in November by the most in 18 months, increasing demand for the relative safety of government debt.
Fitch Affirms U.S. AAA Rating, Warns of Expanding Deficit Fitch Ratings affirmed the U.S.’s AAA credit rating while saying difficult decisions will have to be made on spending and taxes to underpin market confidence in the sustainability of government finances.
Buy American: "Anti-China Backlash" Coming, Gerald Celente Says Recent import/export data show China replaced Germany as the world's largest exporter in 2009, and the U.S. as the world's biggest auto market. In 2010, China's surging economy is set to supplant Japan as the world's second largest. With the global economy still in trouble, especially in U.S. Europe, China's rise is spurring a "real anti-China backlash," according to Gerald Celente, director of the Trends Research Institute. "Those who have the gold rule [and] a lot of people don't want to see China rule."
Non-Current Mortgages Hit Record High 13.2%: LPS One in every 7.5 homeowners in the United States is either behind on their mortgage or in foreclosure, according to new data released by Lender Processing Services (LPS) Monday. That equates to a record high 13.2 percent of the nation’s home loans.
Shadow Inventory Causes Concern for 2010 Housing Market Although the Obama administration has worked to suppress foreclosures, it appears these efforts may not be enough, according to Bank Foreclosures Sale, a foreclosure listing service. High unemployment continues to plague the real estate market, and according to a recent article in the New York Times, an estimated 2.4 million foreclosed homes will be added to the list of 2010 foreclosures. As a result, Bank Foreclosures Sale predicts prices will decrease another 10 percent.
Fed split over impact of mortgage purchases Federal Reserve policy-makers are divided over the potential impact of their plan to end the purchase of mortgages on a still-fragile housing market recovery. Different Fed officials believe the spreads on mortgage-related securities could go up anywhere from a quarter to three-quarters of a percentage point when the Fed stops buying mortgages by the end of March.
Stockton, California Is Foreclosureville, USA, Has One Of The Worst Foreclosure Rates In The United States Stockton hardly looks like the most miserable city in the country. But the statistics and stories over the last two years make a case that it is: Since the housing crisis began, this inland port city 80 miles east of San Francisco has had one of the worst foreclosure rates in the country - for most of the time, the worst.
FHFA: FC Starts Down; Home Forfeitures Up he total delinquency rate for the Fannie Mae and Freddie Mac portfolios increased nearly 100 basis points (bps) to 7.6% in the third quarter, the companies' regulator, the Federal Housing Finance Agency (FHFA), reported Friday. The FHFA also reported a 15% decline in foreclosure starts and a 39% increase in short sales and deeds-in-lieu during the quarter.
Critics say new home-appraisal rules drive down values Home buyers who take out federally insured home loans will soon find their mortgage brokers can't select appraisers, part of an effort to ensure appraisers aren't pressured to inflate home values. Starting Feb. 15, mortgage brokers will no longer be able to order appraisals on loans insured by the Federal Housing Administration (FHA).
Wal-Mart to close 10 Sam's Clubs stores in U.S. Wal-Mart said Monday it will close 10 money-losing Sam's Club stores and cut 1,500 jobs to reduce costs. The stores will close Jan. 22. They are in Nampa, Idaho; La Quinta, Calif.; Louisville, Colo.; Vista, Calif.; Rolling Meadows, Ill.; Clay, N.Y.; and Irvine, Calif. The cities of Houston, Phoenix and Sacramento, will each lose one store.
China Ends U.S.’s Reign as Largest Auto Market China supplanted the U.S. as the world’s largest auto market after its 2009 vehicle sales jumped 46 percent, ending more than a century of American dominance that started with the Model T Ford.
Palin joins Fox News as contributor Sarah Palin has signed a multi-year broadcast deal to serve as a contributor to Fox News, a provocative venture that immediately shook the media landscape Monday, prompting heavy commentary from her fans and foes alike.
Sarah Palin rejects CPAC, accepts tea-party offer 'Going Rogue' author marches to her own drumbeat In step with the title of her No. 1 best-seller "Going Rogue," former GOP vice-presidential candidate Gov. Sarah Palin is bypassing the traditional summit for conservatives this year, the Conservative Political Action Conference, while planning to speak at a tea party event.
Chavez’s 3-Tiered Currency System May Spur Inflation President Hugo Chavez, struggling to stem an outflow of dollars and rein in a budget deficit, has adopted a multiple-tiered exchange-rate system that fueled corruption, food shortages and inflation in the 1980s.
Spending frenzy follows Venezuelan devaluation Long queues are reported at shops in Caracas, following the surprise devaluation of the bolivar on Friday. President Hugo Chávez announced a new multi-tiered exchange rate regime. The official value of the dollar, which has remained at 2.15 bolivars since March 2005, will now be fixed at 2.6 bolivars, a rate reserved for the import of essential goods such as food and medicine.
Israel Is Serious about Fencing Off Egypt Israel has unveiled plans for a security barrier running along the Egyptian border to keep out militants and African migrants. Announcing the £167 million) project, Benjamin Netanyahu, the Israeli prime minister, said: "This is a strategic decision to ensure the Jewish and democratic character of the state of Israel.
Yemeni Sheik Courts, Warns Foreign Governments Zindani Backs Fight Against al Qaeda, But Tells U.S., Others Not to Send Troops Yemen's most influential Islamic scholar warned foreign governments against sending troops to his country to battle al Qaeda, but said he would welcome international support to help Yemen stabilize and develop.
WTO to Probe U.S.- China Tire Rift The World Trade Organization will investigate import tariffs levied by the U.S. on Chinese tires in September, according to documents published Monday by the Geneva-based trade arbiter. The probe follows a Chinese appeal filed almost immediately after the tariffs were announced in September. It's part of a trade battle that has emerged since President Obama took the high-profile decision to approve extra tariffs of 35%, 25% and 20% over the next three years, in addition to the regular 4% levy on tires.
Al Gore sued by over 30,000 Scientists for Global Warming fraud - John Coleman.
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