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Davidowitz: US Economy a "Complete Disaster"


Barack Obama: The great jobs killer


"Falcon" suggested this piece by Bob Chapman, who suggests that thing might get downright medieval: Struggling and Faltering to Manage Economic Recovery. Chapman writes: "As a result of this and other failures we are about to experience the worst economic collapse since 1348 [during the Great Plague.]"


Hell no don't rush...
Housing Cheapest in 40 Years, But Buyers Don't Need to Rush


Tired of Fluctuations, Many are Shedding Stocks


Short Sellers Flag School Stocks


Detroit Three See Auto Sales Drop by More than 10%


Eurozone Jobless Figure at Record High


Hungary to Ask for "Precautionary Bailout" from EU and IMF


US Stocks in Precarious Place Given Economic Uncertainty


Bond Rally Reflects Gloom

In The News Today

Posted: Jul 05 2010 By: Jim Sinclair Post Edited: July 5, 2010 at 3:24 pm

Filed under: In The News

Dear CIGAs,

In the process of securitization your mortgage changes owners. In some cases this happens many times. The paperwork in many cases has been lost, is incomplete or simply impossible to sort out.

If you do not believe this contact your servicer and try to hunt down who now owns your mortgage. You will be stonewalled almost from your first inquiry.

You will note here that servicers in some cases are getting huge money. For what? I ask. They are supposed to be simple middlemen between your payment and funds transfer to the lender, therein being paid for the service, hence the term servicer.

If you pay the servicer, but the present owner of the mortgage does not get the funds, you will be sued for payment. You will have to sue the servicer to get your funds back. If servicers had to be bailed out that means they were not operating as a fiduciary, but as a speculator of some sort. You can therefore be royally screwed.

For your sake please go to this site because if the real lender does not get paid you should be asking what happened to your money?

http://bailout.propublica.org/list/simple

Jim Sinclair’s Commentary

This guy’s nose is growing. Look, you can see it.

ECB chief rules out risk of new recession
AFP – Monday, July 5

AIX-EN-PROVENCE, France (AFP) – – ECB president Jean-Claude Trichet ruled out on Sunday the risk of a new recession, after a week of soft economic data fuelled market fears of a dreaded double-dip into a new slump.

"I don’t think so at all," Trichet told journalists when asked if a double-dip recession was on the horizon.

"At a global level it is clear that we are experiencing a recovery, which is confirmed particularly in the emerging world but also in the industrialized world," he said at an economics conference in the south of France.

But he warned that growth could not be taken for granted in industrialised countries, saying that "it depends on us, it depends on the capacity of the industrialized countries to reinforce confidence."

"This is the reason why it is so important that we have fiscal policies designed to reinforce confidence of households … of businesses … of savers and of investors," he said.

Trichet also said that austerity drives being implemented in several European countries would not hurt the recovery, as some top economists and US officials have suggested.

More…

Jim Sinclair’s Commentary

Here is some important data for CIGAs.

Unemployment Insurance Tracker
Application by Olga Pierce and Jeff Larson, ProPublica – January 20, 2010

The unemployment insurance system is in crisis due to a combination skyrocketing unemployment and – in some cases – poor planning. A record 20 million Americans collected unemployment benefits last year, and twenty-six states have run out of funds and been forced to borrow from the federal government, raise taxes, or cut benefits. In many other states the situation is deteriorating fast. Using near real-time data on state revenues and the benefits they pay out, we estimate how long state trust funds will hold up. Click on a state to find the latest, plus historical data, and details on tax increases and benefit cuts. (Updated Weekly: last update July 01, 2010)

Click to view full chart on site…

Jim Sinclair’s Commentary

This is awful. California and Illinois, now with more than 40 others states, are broke!

Europe is financial kindergarten compared to the more than 40 states of the USA that MUST be bailed out.

Illinois Stops Paying Its Bills, but Can’t Stop Digging Hole
By MICHAEL POWELL
Published: July 2, 2010

CHICAGO — Even by the standards of this deficit-ridden state, Illinois’s comptroller, Daniel W. Hynes, faces an ugly balance sheet. Precisely how ugly becomes clear when he beckons you into his office to examine his daily briefing memo.

Payback Time

He picks the papers off his desk and points to a figure in red: $5.01 billion.

“This is what the state owes right now to schools, rehabilitation centers, child care, the state university — and it’s getting worse every single day,” he says in his downtown office.

Mr. Hynes shakes his head. “This is not some esoteric budget issue; we are not paying bills for absolutely essential services,” he says. “That is obscene.”

For the last few years, California stood more or less unchallenged as a symbol of the fiscal collapse of states during the recession. Now Illinois has shouldered to the fore, as its dysfunctional political class refuses to pay the state’s bills and refuses to take the painful steps — cuts and tax increases — to close a deficit of at least $12 billion, equal to nearly half the state’s budget.

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Jim Sinclair’s Commentary

Bond Vigilante means OTC derivative destroyer of everything they touch.

Austerity means nothing because of the outrageously poor timing. Austerity is the key to hyperinflation because of the outrageously poor timing.

Myths of Austerity
By PAUL KRUGMAN
Published: July 1, 2010

When I was young and naïve, I believed that important people took positions based on careful consideration of the options. Now I know better. Much of what Serious People believe rests on prejudices, not analysis. And these prejudices are subject to fads and fashions.

Which brings me to the subject of today’s column. For the last few months, I and others have watched, with amazement and horror, the emergence of a consensus in policy circles in favor of immediate fiscal austerity. That is, somehow it has become conventional wisdom that now is the time to slash spending, despite the fact that the world’s major economies remain deeply depressed.

This conventional wisdom isn’t based on either evidence or careful analysis. Instead, it rests on what we might charitably call sheer speculation, and less charitably call figments of the policy elite’s imagination — specifically, on belief in what I’ve come to think of as the invisible bond vigilante and the confidence fairy.

Bond vigilantes are investors who pull the plug on governments they perceive as unable or unwilling to pay their debts. Now there’s no question that countries can suffer crises of confidence (see Greece, debt of). But what the advocates of austerity claim is that (a) the bond vigilantes are about to attack America, and (b) spending anything more on stimulus will set them off.

What reason do we have to believe that any of this is true? Yes, America has long-run budget problems, but what we do on stimulus over the next couple of years has almost no bearing on our ability to deal with these long-run problems. As Douglas Elmendorf, the director of the Congressional Budget Office, recently put it, “There is no intrinsic contradiction between providing additional fiscal stimulus today, while the unemployment rate is high and many factories and offices are underused, and imposing fiscal restraint several years from now, when output and employment will probably be close to their potential.”

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