Jul 31 2009
On December 17th, 2008 Jim Cramer pronounced that the housing bottom will be in by June 30, 2009.
The housing market, and by extension, the economy, is trying to heal itself despite the self serving efforts of Washington and various state moratoria.
Foreclosure Mod Sham
The real story, the one the headline conveniently hides, is that homes sales are down 3.6% from a year ago, and that prices in the same period fell 16.8%. And those are numbers from the NAR, an organization known for and set on bending both reality and the numbers that come with it until they will bend no more.
Fannie Mae reported a steep increase in the percentage of home mortgages with overdue payments.
The government-backed mortgage investor said in a monthly summary released Monday that 3.42% of the single-family mortgages it owns or guarantees were 90 days or more delinquent in April, up from 3.15% a month before.
Fannie’s main rival, Freddie Mac, reported last week that its single-family delinquency rate for May was 2.62%, up from 2.44% in April.
Jay Brinkmann, chief economist of the Mortgage Bankers Association, said delinquencies probably won’t start to decline before the second half of next year. Prime loans now are the biggest source of growth in foreclosure starts.
Good news! The rate of the price decline in the housing crash has finally begun to ease.
Bad news! Prices are still falling 18% year over year.
As of April 2009, average home prices across the United States are at similar levels to where they were in the middle of 2003. From the peak in the second quarter of 2006, the 10-City Composite is down 33.6% and the 20- City Composite is down 32.6%.
Delinquencies Double on Least-Risky Loans
Jul 31 2009
From Reuters today we read that bonuses paid out by banks exceeded total revenue.
What?! you say?.
Bonuses paid to executives at nine banks that received U.S. government bailout money in 2008 were greater than net income at some of the banks, the office of New York Attorney General Andrew Cuomo said on Thursday.
Jun 19 2009
Want to know what an Ivy League education will get you?
Apparently nobody at the Federal Reserve has any clue where the trillions of dollars that have come from the Fed’s expanded balance sheet have gone. Additionally, nobody there seems to have any idea what the losses on the Fed’s $2 trillion portfolio really are.
Here’s a question? Have you done anything or is it your job to just get in the fucking way? Have you ever just wanted to grab one of these SOB’s by the throat and just shake the truth out of them?
Sometimes a picture says more than words.
This is what has happened to the FED’s balance sheet from 2008.
For all you defaltionists out there … this Bud’s for you.
Nuff said. (:o)
Jun 12 2009
The well respected teacher, broker Jim Sinclair has been mentoring investors since 1977. Mr. Sinclair is a level headed, cautious investor void of the alarmist mentality. So when he says “Take the money and Run” you might want to pay attention.
[..]You know that information that comes to me has been reliable. You also know that the entire purpose of all of working here at JSMineset has been to get you through this safely. You also know that if we had not been here hundreds of thousands of people now holding gold would not be.
So please pay attention to the following.
I have heard rumors for some time, but today it was confirmed to me, that the Canadian mint’s present problems are not unique and that other depositories (vaults) have had an army of auditors descend on them in the last two weeks. Some of these depositories have names so famous that it would scare the hell out of you. The repercussions would be drastic if they turn out to be troubled.
I suggest to you now that you take delivery of all gold held in vaults and depositories on your behalf, but this time even from the most prestigious.
What made Mr Sinclair issue this statement? In April a “discrepancy” in the Canadian Mints books turned up.
External auditors are investigating a discrepancy between the mint’s 2008 financial accounting of its precious metals holdings and the physical stockpile at the plant on Sussex Drive in Ottawa.
The mystery raises possibilities from sloppy bookkeeping to a gold heist.
Officials with the commercial Crown corporation are saying little and refuse to confirm the amount and value of the unaccounted for gold, silver and palladium.
“An unprecedented demand in gold in 2008 has led to an unreconciled difference between the mint’s financial statements and the physical count of precious metals. There’s a difference there that we’re looking into,” Christine Aquino, mint spokeswoman, said in a prepared statement Tuesday in response to questions from the Ottawa Citizen.
“We’re taking this very seriously. We’re conducting a thorough review and we’re expected to have that completed within the month. (It) includes the analysis of precious metal by-products and financial data. We’ve allocated all necessary resources to this review.”
She stressed police have not been called into what mint officials consider an internal matter. She would not say whether the gold and other metals in question were part of the refinery and bullion operation or one of the mint’s three other business lines: producing Canadian circulating coins, designing and producing coinage for foreign countries, and numismatics.
“We’re looking at many different angles right now,” she said.
That was April. Well low and behold it is now June and the
Mint’s conclusion? Call in the Mounties!
OTTAWA – On government orders, the Royal Canadian Mint has called for a criminal probe into as much as $20 million in unaccounted-for gold and precious metals at its Sussex Drive headquarters.
The looming police investigation comes eight months after the Crown corporation first learned it had lost track of the riches last October. The Citizen revealed the mystery last week.
The call for a police investigation is the third effort to determine whether theft or an accounting error is behind an “unreconciled difference” between the mint’s 2008 financial records and its physical stockpile of gold and other precious metals.
An internal “precious metals reconciliation” project was initiated by the mint last fall. In March, with that reckoning apparently no nearer to finding answers, an external audit was commissioned.
Security at these facilities is unsurpassed. So where did it go? This will continue to play out in the coming weeks. What is interesting (and yet alarming) is … it doesn’t appear to be an isolated incident, at least according to Jim Sinclair.
Jun 10 2009
The shear amount of information uncovered is staggering. Hopefully it will keep your interest.
Let me warm up here with a couple of interesting quotes.
“Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and desirable monetary medium.”
Murray N. Rothbard
Why Gold and Why Now?
“If you don’t trust gold, do you trust the logic of taking a beautiful pine tree, worth about $4,000 – $5,000, cutting it up, turning it into pulp and then paper, putting some ink on it and then calling it one billion dollars?”
Kenneth J. Gerbino
Ever wonder why banks and governments like a paper currency system? Why they fully embraced the Keynesian theory of deficit spending?
“Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”
That one is a classic considering the source.