The risks of the U.S. economy entering a double-dip recession and falling into deflation may now be around one in four, the chief executive of Pimco, the world's biggest bond investment manager, said on Thursday.
Major Structural Changes In One Year
Guest Post: Russia Bans Grain Exports as the End Game Trade Begins
Food Stamp Usage Hits 18 Sequential Record High At 40.8 Million
IRS To Withhold Indicator That Shows Refunds Owed To Taxpayers
30 Year Fixed Rate Mortgage Plumbs Fresh Record Lows As Mortgage Market Anticipates New QE
Treasuries Close Below 2.9% As Stocks Reflect The Reality Of The Twilight Zone
Senators Introduce Legislation to Eliminate SEC FOIA Exemption
Posted: Aug 05 2010 By: Jim Sinclair Post Edited: August 5, 2010 at 2:45 pm
Filed under: Jim's Mailbox
Eric,
This is more signs of things to come.
"Currency Induced Cost Push Inflation" cannot and will not be avoided.
Jim
Senate approves jobs bill to stop teacher layoffs CIGA Eric
Legislation long sought by Democrats to save the jobs of up to 300,000 teachers, police and other public workers passed the Senate on Thursday.
The market’s response to this or any additional stimulus will be higher prices.
Gold, London P.M. Fixed:
Source: news.yahoo.com
More…
Posted: Aug 05 2010 By: Jim Sinclair Post Edited: August 5, 2010 at 12:11 pm
Filed under: In The News
Posted: Aug 05 2010 By: Jim Sinclair Post Edited: August 5, 2010 at 1:52 am Filed under: In The News
Jim Sinclair’s Commentary
What is wrong with this picture?
U.S. Consumer Bankruptcies May Exceed 1.6 Million, Report Says By Edvard Pettersson – Aug 3, 2010 9:01 PM PT
“The pace of ( BANKRUPTCY) consumer filings this year remains on track to top 1.6 million filings,” said American Bankruptcy Institute executive director Samuel J. Gerdano, seen here. Photographer: Jay Mallin/Bloomberg
More…
Jim Sinclair’s Commentary
Bloomberg says maybe what they have always called crazies aren’t.
Secret Banking Cabal Emerges From AIG Shadows: David Reilly By David Reilly – Jan 28, 2010 7:00 PM MT
The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.
Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.
We’re talking about the Federal Reserve Bank of New York, whose role as the most influential part of the federal-reserve system — apart from the matter of AIG’s bailout — deserves further congressional scrutiny.
The New York Fed is in the hot seat for its decision in November 2008 to buy out, for about $30 billion, insurance contracts AIG sold on toxic debt securities to banks, including Goldman Sachs Group Inc., Merrill Lynch & Co., Societe Generale and Deutsche Bank AG, among others. That decision, critics say, amounted to a back-door bailout for the banks, which received 100 cents on the dollar for contracts that would have been worth far less had AIG been allowed to fail.
That move came a few weeks after the Federal Reserve and Treasury Department propped up AIG in the wake of Lehman Brothers Holdings Inc.’s own mid-September bankruptcy filing.
More…
Jim Sinclair’s Commentary
At what price? The pretend high price paid by the Fed or the ZERO many are worth?
Maybe it is a new gift to the banks?
N.Y. Fed May Require Banks to Buy Back Faulty Mortgages, Assets By Dawn Kopecki and Jody Shenn – Aug 4, 2010 4:39 PM ET
The Federal Reserve Bank of New York may seek to require banks to buy back its holdings of faulty mortgages and other assets acquired through the rescues of Bear Stearns Cos. and American International Group Inc., a spokesman said.
“We are involved in multiple efforts related to exercising our rights as investors in non-agency RMBS or CDO securities,” New York Fed spokesman Jack Gutt wrote in an e-mail, referring to residential mortgage-backed securities and collateralized debt obligations.
Steps include “those that require originators to repurchase ineligible loans,” Gutt wrote, referring to ones that aren’t backed by federal entities and violate bond contracts. “These efforts support our primary goal of maximizing the value of these portfolios on behalf of the American taxpayer.”
The Federal Reserve, Fannie Mae, Freddie Mac and other mortgage investors are seeking to force buybacks to rid their books of bad assets amid persistent losses from soured housing loans. Debt buyers and insurers, who can rescind their coverage, are combing through loan documents for faulty appraisals, inflated borrower incomes and missing documentation that can trigger contractual agreements to repurchase ineligible assets as insurers seek ways to void coverage or recoup costs.
“Of course the Fed should pursue ‘efforts to exercise our rights as investors,’” said Chris Kotowski, a bank analyst at Oppenheimer & Co. in New York. “The only real question is, what took them so long?”
More…
What is wrong with this picture?
U.S. Consumer Bankruptcies May Exceed 1.6 Million, Report Says By Edvard Pettersson – Aug 3, 2010 9:01 PM PT
“The pace of ( BANKRUPTCY) consumer filings this year remains on track to top 1.6 million filings,” said American Bankruptcy Institute executive director Samuel J. Gerdano, seen here. Photographer: Jay Mallin/Bloomberg
More…
Jim Sinclair’s Commentary
Bloomberg says maybe what they have always called crazies aren’t.
Secret Banking Cabal Emerges From AIG Shadows: David Reilly By David Reilly – Jan 28, 2010 7:00 PM MT
The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.
Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.
We’re talking about the Federal Reserve Bank of New York, whose role as the most influential part of the federal-reserve system — apart from the matter of AIG’s bailout — deserves further congressional scrutiny.
The New York Fed is in the hot seat for its decision in November 2008 to buy out, for about $30 billion, insurance contracts AIG sold on toxic debt securities to banks, including Goldman Sachs Group Inc., Merrill Lynch & Co., Societe Generale and Deutsche Bank AG, among others. That decision, critics say, amounted to a back-door bailout for the banks, which received 100 cents on the dollar for contracts that would have been worth far less had AIG been allowed to fail.
That move came a few weeks after the Federal Reserve and Treasury Department propped up AIG in the wake of Lehman Brothers Holdings Inc.’s own mid-September bankruptcy filing.
More…
Jim Sinclair’s Commentary
At what price? The pretend high price paid by the Fed or the ZERO many are worth?
Maybe it is a new gift to the banks?
N.Y. Fed May Require Banks to Buy Back Faulty Mortgages, Assets By Dawn Kopecki and Jody Shenn – Aug 4, 2010 4:39 PM ET
The Federal Reserve Bank of New York may seek to require banks to buy back its holdings of faulty mortgages and other assets acquired through the rescues of Bear Stearns Cos. and American International Group Inc., a spokesman said.
“We are involved in multiple efforts related to exercising our rights as investors in non-agency RMBS or CDO securities,” New York Fed spokesman Jack Gutt wrote in an e-mail, referring to residential mortgage-backed securities and collateralized debt obligations.
Steps include “those that require originators to repurchase ineligible loans,” Gutt wrote, referring to ones that aren’t backed by federal entities and violate bond contracts. “These efforts support our primary goal of maximizing the value of these portfolios on behalf of the American taxpayer.”
The Federal Reserve, Fannie Mae, Freddie Mac and other mortgage investors are seeking to force buybacks to rid their books of bad assets amid persistent losses from soured housing loans. Debt buyers and insurers, who can rescind their coverage, are combing through loan documents for faulty appraisals, inflated borrower incomes and missing documentation that can trigger contractual agreements to repurchase ineligible assets as insurers seek ways to void coverage or recoup costs.
“Of course the Fed should pursue ‘efforts to exercise our rights as investors,’” said Chris Kotowski, a bank analyst at Oppenheimer & Co. in New York. “The only real question is, what took them so long?”
More…
Filed under: In The News
Jim Sinclair’s Commentary
Here we go. $26 billion now. It will pass. This is just for starters.
QE is going to infinity as this and the many requests following this have to be financed.
$26 billion for states passes key test vote By Tami Luhby, senior writer
August 4, 2010: 4:33 PM ET
NEW YORK (CNNMoney.com) — The Senate overcame a key procedural hurdle Wednesday to send $26 billion more in federal aid to cash-strapped states.
The measure, which passed by a 61-38 vote, contains $16.1 billion in additional Medicaid money and $10 billion to prevent layoffs of teachers and first responders.
State officials have been desperately lobbying their representatives, saying they need the money to shore up their budgets. About 30 states had already included the additional Medicaid funds in their fiscal 2011 budgets, which began July 1, and would have to cut further if it doesn’t come through. The bill is expected to save 290,000 jobs, according to Senate Democrats.
President Obama also weighed in Monday, asking lawmakers to pass the additional assistance to the states, which has been kicking around Congress in various forms for months.
Senate Democrats needed to garner at least 60 votes for the measure to pass this initial vote, meaning some Republicans had to cross the aisle. That help came in the form of Maine Republicans Susan Collins and Olympia Snowe.
A final vote could come late in the week, just before the Senate is scheduled to recess for the long August break. The chamber will vote before it leaves town, a Senate Democratic leadership aide said.
More…
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