Farewell to all the Emperors

Let’s see. Markets (stocks and commodities) rally from horrible lows of March 2009. Most economists switch the party line from “end of the world” to “recovery.” By year-end smugness has returned. There was even a consensus that interest rates will have to move higher. Almost nobody accepts our view that the rally represented a flight out of money. Rather it is/was seen as a harbinger of economic recovery. And now, moving into February 2010, the music has changed.

Sooner or Later, You'll Invest Abroad

Many conventional U.S. brokers are relatively clueless when it comes to gold stocks. If you asked them to name one, chances are it would be a domestic producer, one with assets located primarily in North America. But that's not where the big money will be made over the next decade.

Putin calms Greece, says U.S. debt big too

Russian PM plays down Greece's economic woes, telling his visiting Greek counterpart the U.S. is no better than Greece in handling its debt and fiscal deficit

Bodies found in IRS building hit by plane

A software engineer furious with the Internal Revenue Service launched a suicide attack on the agency Thursday by crashing his small plane into an office building containing nearly 200 IRS employees, setting off a raging fire that sent workers running for their lives.

South Carolina Lawmaker Seeks to Ban Federal Currency

South Carolina Rep. Mike Pitts has introduced legislation that would mandate that gold and silver coins replace federal currency as legal tender in his state.

Big traders face "landmine" in CFTC energy rule

Buried deep in the proposal to set position limits on oil and gas futures is a possible "land mine" that could force the industry's biggest traders to make a stark choice: Keep your hedging exemptions, or keep your speculative book. But you can't keep both.

Why the IMF's supposed gold sales don't mean much

International Monetary Fund announcing that it "shortly" will sell 191 tonnes of gold on general markets, unlike the 212 tonnes it claimed to sell last year directly to India, Sri Lanka, and Mauritius. While the gold price quickly fell $7 or so on the news, there are a few things to remember.

Is the Euro terminal

An Interview with Hernando De Soto

US bank lending falls at fastest rate in history

Bank lending in the US has contracted so far this year at the fastest rate in recorded history, raising concerns that the Federal Reserve may have jumped the gun by withdrawing emergency stimulus.

China Sells Treasuries as Obama Increases U.S. Debt (Update1)

China sold a record amount of U.S. debt, raising speculation it is turning bearish as President Barack Obama increases borrowing to unprecedented levels to sustain economic growth.

New wave of foreclosures by end of 2010 is feared

About 4 million U.S. homeowners are 90 days or more delinquent on their loans or in foreclosure proceedings, Moody's Economy.com says. A federal loan modification program is helping a relative few.

Ron Paul: Are US Taxpayers Bailing Out Greece?

Last week we were reminded that ours is not the only country suffering from severe economic turmoil.

Goldman faces special audit and possible Ban in Europe

"The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government - a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF's staff could speak freely about the U.S., it would tell us what it tells all countries in this situation; recovery will fail unless we break the financial oligarchy that is blocking essential reform." ~ The Atlantic Monthly, May 2009, by Simon Johnson

CMBS Delinquencies and Special Servicing Hit Record Highs

As HousingWire reported over the weekend, the delinquency rate on commercial mortgage-backed securities (CMBS) conduit and fusion loans posted the largest single monthly increase on record. US CMBS loans are also transferring to special servicing status faster and greater than ever before.

US Government Debt is Not a Safe Haven

As the debt crisis in Greece continued to unfold last week, the US dollar and US government debt instruments were being touted as a “safe haven” alternative to the euro as well as European sovereign debt. These calls were made even though Moody’s sounded the alarm the week before by warning that the US government could lose its triple-A rating if economic growth remains slow.

Goldman’s O’Neill Says ‘Something Brewing’ in China on Currency

Goldman Sachs Group Inc. Chief Economist Jim O’Neill said China may be poised to let its currency strengthen as much as 5 percent to slow the world’s fastest growing major economy.

Britain and the PIGS

As of today, the British government must pay a higher interest rate to borrow money for ten years than either the Italian or the Spanish governments, despite the extraordinary ructions going on within the eurozone.

Most Germans want Greece thrown out of euro

The scale of public resistance throughout Europe to a potential Greek bail-out has become clear as it emerged that the majority of Germans think the Mediterranean nation should be thrown out of the euro if its problems deepen.

Battle Over the Bailout

THE critical lawsuit challenging that mystery of finance known as the Bailout started, oddly enough, with a casual newsroom chat.

Can anyone fix the euro puzzle?

A crisis-strewn week has left the single currency on the edge of a precipice, write Edmund Conway and Bruno Waterfield

EU President says deal has been reached to support Greece

No Flash warning To take advantage of all the features on FRANCE24.COM, please click here to download the latest version of Flash Player. EU president Herman Van Rompuy has announced that a deal had been reached by EU partners to help Greece cope with its deficit crisis, after Prime Minister George Papandreou appealed for "psychological" and "political" support from Europe.

Greece Broke the Rules

“There are rules, and these rules need to be adhered to." This quote could easily have been made by Sir Isaac Newton 300 hundred years ago explaining how financial discipline would be imposed by his then new invention, the classical Gold Standard. But no, these are the words of German Chancellor Angela Merkel uttered just yesterday. In effect, they precisely state how the Greek crisis should be solved.

SOVEREIGN ALCHEMY WILL FAIL

When we look at the world economy today, wherever we turn we see a wall of risk. And sadly this is an insurmountable wall with risks that are totally unprecedented in history. There has never before been a potentially catastrophic combination of so many virtually bankrupt major sovereign states (US, UK, Spain, Italy Greece, Japan and many more) and a financial system which is bankrupt but is temporarily kept alive with phoney valuations and unlimited money printing. But governments will soon realise that they are not alchemists who can turn printed paper into gold. The consequences of the global financial crisis are potentially catastrophic.

Aid Is Tough Sell in Germany

Germany's greatest challenge in crafting a European rescue package for Greece could come in winning the support of those expected to pay the biggest share of the bill—its own citizens.

Markets fragile amid confusion over Greek rescue deal

European officials were scrambling on Wednesday to put together a €20bn rescue plan or standby facility for Greece amid fears that misgivings in Germany may yet derail a credible deal.

PIGS Exposure Explains ‘Shotgun Greek Wedding’: Chart of Day

German and French banks’ “enormous” exposure to Portugal, Ireland, Greece and Spain explains why Europe’s biggest economies are moving to rescue their southern neighbors, Societe General SA said today in a report titled “Shotgun Greek Wedding.”

‘Volcker rule’ gives Goldman stark choice

Goldman Sachs and other banks should give up their bank status if they want to avoid the ban on proprietary trading proposed by the White House, Paul Volcker, head of President Barack Obama’s Economic Recovery Advisory Board, said.

How Goldman Sachs Helped Greece to Mask its True Debt

Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit.

US, Europe Will All Default On Their Debt: Marc Faber

The governments of every developed economy will eventually default on their sovereign debts, including the US, the UK and Western Europe, Marc Faber, editor of the Gloom, Boom & Doom report, told CNBC.

Germany backs Greek bail-out as EU creates 'economic government'

Germany is preparing to drop its vehement opposition to a rescue package for Greece, fearing that a rapid escalation of the debt crisis in Southern Europe could endanger German banks and damage the euro.

The Dumping Begins: Chinese Reserve Managers Notified That Any Non-USG Guaranteed Securities Must Be Divested

Dollar-denominated risk assets, including asset-backed securities and corporates, are no longer wanted at the State Administration of Foreign Exchange (SAFE), nor at China’s large commercial banks.

Crony capitalism appears to be not only an Argentinian privilege

1/14/10 Stossel Excerpt on Crony Capitalism: Seriously?!

Stiglitz Says U.S., U.K. Default Is ‘Absurd’ Investor Notion

Nobel laureate Joseph E. Stiglitz said the prospect of a default by the U.S. or the U.K. is an “absurd” notion constructed in financial markets.

Jumbo Mortgage ‘Serious Delinquencies’ Rise to 9.6%

U.S. prime jumbo mortgages at least 60 days late backing securities reached 9.6 percent in January from 9.2 percent in December, the 32nd straight increase for “serious delinquencies,” according to Fitch Ratings.

Greece crisis: There but for the grace of God goes Britain

Should markets pass the same verdict on Britain as on Greece, the results would be almost identical - and just as disastrous, says Edmund Conway.

Greek Ouzo crisis escalates into global margin call as confidence ebbs

Greek Ouzo crisis escalates into global margin call as confidence ebbs For the third time in 18 months the global financial system risks spinning out of control unless political leaders take immediate and radical action.

Deutsche Bank And Unicredit Pull Out Of Greek Repo Market, Cease Lending Against Greek Collateral

Deutsche Bank and Unicredit, which over the past 2-3 weeks have ceased accepting Greek collateral and have pulled out of the Greek repo market altogether.

Secret summit of top bankers

Representatives from 24 central banks and monetary authorities including the US Federal Reserve and European Central Bank landed in Sydney to meet tomorrow at a secret location, the Herald Sun reports.

Ron Paul - H.R. 4248 Free Competition in Currency Act

Congressman Paul makes the case for the legislation he introduced in December 2009 to end the Federal Reserve's monopoly on our money supply by allowing competing currencies. You can contact Congress in support of H.R. 4248 at JBS.org (go to Legislative Action under the Action menu item).

Taleb Says ‘Every Human’ Should Short U.S. Treasuries

Nassim Nicholas Taleb, author of “The Black Swan,” said “every single human being” should bet U.S. Treasury bonds will decline, citing the policies of Federal Reserve Chairman Ben S. Bernanke and the Obama administration.

Official says Fed might buy more mortgage-backed securities

The Federal Reserve would consider reopening its program to support the mortgage market if interest rates spiked or the economy showed new weakness, Federal Reserve Bank of New York President William C. Dudley said in two new interviews.

Fears of 'Lehman-style' tsunami as crisis hits Spain and Portugal

The Greek debt crisis has spread to Spain and Portugal in a dangerous escalation as global markets test whether Europe is willing to shore up monetary union with muscle rather than mere words. 

Portugal near political crisis over debt

http://www.ft.com/cms/s/0/76aa4a50-11d9-11df-b6e3-00144feab49a.html?nclick_check=1

WORLD FOREX: Swiss Franc Sinks; Central Bank Spotted Selling

http://www.marketwatch.com/story/world-forex-swiss-franc-sinks-central-bank-spotted-selling-2010-02-05

Precious Metals at ‘Bargain Basement’ Prices

http://www.fgmr.com/precious-metals-at-bargain-basement-prices.html

Bank of England's time-out for quantitative easing plan

http://news.bbc.co.uk/2/hi/business/8496830.stm

Gold to hit $1,350 - $1,400 by late Spring - John Embry

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=97226&sn=Detail&pid=1

Gold to Reach $1,500 as Haven Status Restored, Nichols Says

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ay7aVAKL6qYw

Teachers pension fund is $43 billion short

As you can know I am an Actuary so you can believe this is a piece only for this comunity but it is not the case. Give a look.
http://www.latimes.com/business/la-fi-calstrs29-2010jan29,0,4882943.story

So, How Do You Think This Movie Will End?

http://www.businessinsider.com/henry-blodget-so-how-do-you-think-this-movie-will-end-2010-1

China - The Mother of All Black Swans - By Vitaliy Katsenelson

http://www.scribd.com/doc/26781802/China-The-Mother-of-All-Black-Swans-By-Vitaliy-Katsenelson

Remarks of Chairman Gary Gensler, OTC Derivatives Reform, American Bar Association, Committee on Derivatives and Futures Law

This Gensler piece (Chairman of the Commodity Futures Trading Commission) on Volcker's financial reform

https://www.box.net/shared/m

Publicar entrada

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Volcker on Volcker's Rule

 Volcker on CNBC. This is a must hear.
http://www.cnbc.com/id/15840232?video=1402871801&play=1

Banks shouldn't be hedge funds, Volcker tells Senate

http://www.marketwatch.com/story/banks-shouldnt-be-hedge-funds-volcker-testifies-2010-02-02

Gold: fundamentals remain strong, says World Gold Council

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/7136743/Gold-fundamentals-remain-strong-says-World-Gold-Council.html

Beware Counterfeiters

More readings on gold. This is a must read.

https://www.box.net/shared/qcdlvmf676

Should Germany bail out Club Med or leave the euro altogether?

There is a big dilemma for Germany.
http://www.telegraph.co.uk/finance/comment/7119986/Should-Germany-bail-out-Club-Med-or-leave-the-euro-altogether.html

Swiss warn UBS bank could collapse

http://www.google.com/hostednews/afp/article/ALeqM5gXaC0zZ46fjJbDfFg-f405CmAAfw

Angela Merkel ready to buy stolen Swiss data on alleged tax evaders

http://www.guardian.co.uk/business/2010/feb/01/angela-merkel-swiss-data-tax-evaders

IEA to Meet CFTC, OPEC, Banks on Curbing Speculation (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMVtmkxhM6jk&pos=7

France's Sarkozy "We Need A New Bretton Woods System"

http://www.zerohedge.com/article/frances-sarkozy-we-need-new-bretton-woods-system

Say Goodbye to Cheap Oil - IEA Gets Slammed Over Oil Production Figures

http://seekingalpha.com/article/185319-say-goodbye-to-cheap-oil-iea-gets-slammed-over-oil-production-figures?source=from_friend Remember one of my first polls Is it the end of cheap oil?

Secret Banking Cabal Emerges From AIG Shadows: David Reilly

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aaIuE.W8RAuU

Why gold will keep going up for years

http://www.gata.org/node/8281

Why the Volcker Plan Doesn’t Go Far Enough

One point of view.
http://moneymorning.com/2010/01/28/volcker-plan/

Funds flee Greece as Germany warns of "fatal" eurozone crisis

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7095818/Funds-flee-Greece-as-Germany-warns-of-fatal-eurozone-crisis.html

Risk of investing in precious metals ETF's

http://www.bmgbullion.com/doc_bin/Risk%20of%20investing%20in%20Precious%20Metals%20ETFs.pdf

Barrick chairman sees upward gold trend intact

http://www.reuters.com/article/idUSTRE60Q39Y20100127

Davos 2010: George Soros warns gold is now the 'ultimate bubble'

http://www.telegraph.co.uk/finance/financetopics/davos/7085504/Davos-2010-George-Soros-warns-gold-is-now-the-ultimate-bubble.html

AIG Doc SEC Dubbed “Confidential” Until 2018 (attached)

http://www.ritholtz.com/blog/2010/01/confidential-aig-doc-sec-dubbed-until-2018-attached/

S&P cuts Japan outlook to ‘negative’

http://www.ft.com/cms/s/0/f24b0b52-0a33-11df-8b23-00144feabdc0.html?nclick_check=1

Britain at risk of plunging back into recession

Britain's economic recovery plans were thrown into turmoil yesterday after official figures showed that the country had limped weakly out of recession

http://www.telegraph.co.uk/finance/financetopics/recession/7080587/Britain-at-risk-of-plunging-back-into-recession.html

Suspending Money Market Redemptions Is Now Legal; SEC Approves New Money Market Regulation In 4-1 Vote

http://www.zerohedge.com/article/suspending-money-market-redemptions-now-legel-sec-approves-new-money-market-regulation-4-1-v

Two at Fed Had Doubts Over Payout by A.I.G.

http://www.nytimes.com/2010/01/27/business/27aig.html?ref=business

Expect gold to gain more than 30% this year

http://www.sprott.com/Docs/InvestorsDigest/2010/01_29_2010%20Expect%20gold%20to%20gain%20more%20than%2030%20this%20year.pdf

Gold's Rate of Appreciation Against 23 World Currencies

http://goldmoney.com/commentary-the-decades-best-national-currency.html

Tishman Venture Gives Up Stuyvesant Project

High-Profile Purchase of Manhattan Complex Collapses Under Debt Mountain

http://online.wsj.com/article/SB10001424052748703415804575023483097973538.html 

SEC mulled national security status for AIG details

http://www.reuters.com/article/idUSTRE60N1S220100124

AIG Took Four Tries on Filing as Fed Asked to Withhold Data

http://www.bloomberg.com/apps/news?pid=20601087&sid=aRexIMpLtIL4&pos=4

FEAR INDEX

http://www.fgmr.com/two-important-messages-from-the-fear-index.html

Credit Card Companies Pulling Back Credit Offers to American Households: Those Zero Percent Offers have now Turned into 30% Offers with Annual Fees. Banks have over $2 Trillion in Excess Reserves yet are unable to Offer a Decent Credit Card Rate.

http://www.mybudget360.com/credit-card-companies-pulling-back-credit-offers-to-american-households-those-zero-percent-offers-have-now-turned-into-30-offers-with-annual-fees-banks-have-over-2-trillion-in-excess-reserves-yet/

Fitch: U.S. Retail Credit Card Defaults Hit Near-Record Levels with No Relief in Sight

http://insurancenewsnet.com/article.aspx?id=154105