In The News Today Posted: Jan 08 2010 By: Jim Sinclair Post Edited: January 8, 2010 at 7:33 pm
Filed under: In The News
Dear CIGAs,
This is not a dress rehearsal.
This is the real thing, and has been since you received the email titled "This Is It!"
Take a look at the following list of news topics:
-Tishman Real Estate to miss payment on a commercial loan of over $5 billion on a massive New York apartment complex, the 2nd largest default in commercial real estate loans in history. -

California declares an economic emergency. -

Employment figures stink. -

Apartment vacancies hit record highs. -

Foreclosures are setting new records. -

Consumer credit in the US drops a record $17.5 billion.

All of this is what we have gotten from OTC derivatives and a financial industry bailout of unprecedented proportion.
QE MUST go to Infinity. Talk about the Fed draining is an insult even to Mr. Fred’s intelligence.
The US dollar is toast. Gold is headed to $1650 – $1764 now.
Remember, at $1764 1,000,000 mineable ounces of gold in production will have a gross worth $1,764,000,000.
That is real money. That is honest money.

California declares a fiscal emergency and is requiring $9.5 billion in the short term.
The US dollar has its own Greece, Italy, Spain and Iceland. New York is directly behind California as well as 39 other states.
Sleep on Sheeplez.

Paralyzed In An Idiotic Fiscal Freezer

"We Will Have Some Downside Volatility"

401k/IRA Screw Job Coming?




Jim Sinclair’s Commentary
I will give you one reason. It is locked in a BEAR MARKET.
3 reasons home prices are heading lower By Les Christie, staff writerJanuary 1, 2010: 6:22 PM ET
NEW YORK (CNNMoney.com) — After four months of gains, home prices flattened in October. Worse yet, industry insiders think that they’ll soon start to fall.
Prices have risen more than 3% since May, according to S&P/Case-Shiller.
But most forecasts predict price declines in 2010, with possible losses ranging from anywhere from 3% on up. Fiserv Lending Solutions, a financial analytics firm, forecasts that prices will fall in all but 39 of the 381 markets it covers, with an average drop of 11.3%.
"We’ve seen recent price stabilization because of low mortgage interest rates and the impact of the first-time homebuyers tax credit," said Pat Newport of IHS Global Research. "But there are really good reasons to think prices will now start going down."
There are three main reasons for the reversal: a coming flood of foreclosures, rising interest rates and the eventual end of the tax credits.
For Gus Faucher, the director of macroeconomics for Moody’s Economy.com, the huge number of foreclosures that remain in the pipeline is the big problem.
More…

Jim Sinclair’s Commentary
Trillions spent, and the best we can do is bottom bounce. We are in real trouble.
To hear every day how the Fed is going to drain is total nonsense and an insult to everyone’s intelligence.
Consumer Credit in U.S. Declined in November by Most on Record By Vincent Del Giudice
Jan. 8 (Bloomberg) — Consumer credit in the U.S. dropped a record $17.5 billion in November as unemployment close to a 26- year high discouraged borrowing and banks limited access to loans.
The slump in credit to $2.46 trillion was more than anticipated and followed a revised $4.2 billion drop in October, Federal Reserve figures showed today in Washington. The median estimate of economists surveyed by Bloomberg News projected a decrease of $5 billion. The series of 10 straight declines was the longest since record-keeping began in 1943.
A labor market that’s shed 7.2 million jobs since the recession started in December 2007 is restraining consumer spending that accounts for about 70 percent of the economy. Fed policy makers have said tighter bank lending standards and reductions in credit lines are hampering the recovery.
“The consumer is battling some pretty fierce headwinds right now with double-digit unemployment rates, an inability to obtain credit, and looming tax hikes for wealthier Americans,” Chris Rupkey, chief financial economist at Bank of Tokyo- Mitsubishi UFJ Ltd. in New York, said before the report. “Consumers are trying to wean themselves off of credit cards, and if they don’t, banks will help them.”
Consumer credit in October was revised from a previously reported $3.5 billion decline, and the forecast for November was based on the median of 32 estimates in a Bloomberg News survey. Projections ranged from decreases of $2 billion to $10 billion. Credit dropped at an 8.5 percent annual rate in November.
More…