Bernanke Says U.S. Economic Growth Too Slow Even With Fed Bond Purchases. Gee, if the Fed just buys lots and lots of stocks and bonds, we'll all be multi-trillionaiares, just like those wealthy Zimbabweans.



Zero Hedge: Debunking The Great Myth Of US Consumer Deleveraging, Or Why The US Economy Will End Not With A Whimper But A Bang


15 Bone Chilling Signs That Part Two Of The Double Dip Housing Crash Has Begun


Revisiting option ARM data – Bank of America, Wells Fargo, and JP Morgan still have over $160 billion in option ARM loans outstanding. Over 250,000 option ARMs in California still active.


Trashing the dollar to save the economy


Those Who Know Will Understand 


Silver Futures Jump to 30-Year High; Gold Rises to Record, Topping $1,300


Gold Through The Ages


Undervalued Silver in a Government Spending Frenzy


 
Did the Fed Really Say Inflation Isn't High Enough?

Introduction To The Road Through 2012: Revolution or World War III

 

Brazil Crops Shrivel as Amazon Dries Up to Lowest in 47 Years.


 Pneumonic Plague in China.

 
Australia faces worst plague of locusts in 75 years





Jim Sinclair’s Commentary
See what happens if a rating agency tells the truth!

Chinese Ratings Agency That Gave The US A Bad Rating Blasts The SEC Joe Weisenthal | Sep. 26, 2010, 5:54 PM
Dagong Global Credit Rating Co. LTD is a Chinese ratings agency that got some attention earlier this year for ratings the US a mere AA, in contrast to the AAA-rating offered by the big three.
Last week the SEC rejected Dagong’s bid to be recognized as an official National Statistical Ratings Agency.
That prompted Dagong to blast the SEC, saying it would take a legal action.
The SEC’s official line is that it can not conduct proper cross-border supervision.
A report in Xinhuanet quotes an expert saying that the SEC is probably just looking to keep the oligopoly in place, and well, the answer to that is… well, duh.
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Jim Sinclair’s Commentary
It is only going to get worse as we enter the predictable effect of ineffectual QE to Infinity

Banks Keep Failing, No End in Sight
Since WaMu Fell, 279 Lenders Have Collapsed; Lost Jobs, Curtailed Lending and the Big Get Bigger * SEPTEMBER 27, 2010
BY RANDALL SMITH AND ROBIN SIDEL
The largest number of bank failures in nearly 20 years has eliminated jobs, accelerated a drought in lending and left the industry’s survivors with more power to squeeze customers.
Some 279 banks have collapsed since Sept. 25, 2008, when Washington Mutual Inc. became the biggest bank failure on record. That dwarfed the 1984 demise of Continental Illinois, which had only one-seventh of WaMu’s assets. The failures of the past two years shattered the pace of the prior six-year period, when only three dozen banks died.
Two more banks went down on Friday, and failures are expected to "persist for some…
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Jim Sinclair’s Commentary
This is prevalent and worse. Control of documents was lost in the boom in sales of securitized debt. A special meeting was called in 2008 by the New York Federal Reserve about this calamity.
Manufacturers of this toxic crap promised to fix the loss of documents and duplications of mortgages found in securitized paper, but never did.
There is a great amount of securitized debt on mortgages that has no chance whatsoever of recovery.

JPMorgan Based Home Foreclosures on Faulty Court Documents, Lawyers Claim By Lorraine Woellert and Dakin Campbell – Sep 26, 2010 9:00 PM MT
JPMorgan Chase & Co. faces a legal challenge next month that could cast doubt on thousands of foreclosures after a mortgage executive at the bank said she didn’t verify documents used to justify home seizures.
Lawyers for a Palm Beach County, Florida, homeowner asked a judge to throw out a foreclosure as a penalty for misleading the court, according to attorney Tom Ice of Ice Legal PA. They’re citing a May 17 deposition in which the JPMorgan executive said she signed thousands of affidavits and documents supporting the New York-based bank’s claims without personally checking loan records. The court is scheduled to hear arguments Oct. 19.
The Chase Home Finance operation supervisor, Beth Ann Cottrell, said in May she was among eight managers who together sign about 18,000 documents a month, according to a transcript of her sworn deposition provided by Ice. Asked how they were prepared, she said she relied on other people at the firm.
“My review is more or less signing the document unless it’s questionable,” she said. That means, “somebody has a question and brings it to me and says, ‘Beth, can you take a look at this?’”
Inaccurate statements by banks in foreclosure documents may give borrowers who have lost their homes a legal basis to challenge the seizures, derailing resales and casting doubts on property titles. A Florida court sanctioned Ally Financial Inc.’s GMAC Mortgage unit for faulty affidavits in 2006, and the firm suspended evictions in 23 states this month after finding employees still signing affidavits without checking the data.
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Jim Sinclair’s Commentary
The recent auction of Irish bonds went well. The euro rescue fund of $1 trillion bought it.
The euro rescue funds bought the Greek auctions as well. Only fools are fooled.

Anglo Irish Debt Rating Cut by Moody’s on Guarantee September 27, 2010, 7:34 AM EDT
By Joe Brennan
Sept. 27 (Bloomberg) — Anglo Irish Bank Corp.’s senior debt was cut to the lowest investment grade rating by Moody’s Investors Service, which said it may reduce the rating to junk unless the government guarantees bondholders against losses.
The ratings company cut the lender’s senior unguaranteed debt to Baa3 from A3, Moody’s said in a statement today. Anglo Irish’s subordinated debt, guaranteed by Ireland’s government until Sept. 29, was also downgraded to Caa1 from Ba1. The firm said it may reduce its senior debt ratings.
Ireland first provided the guarantee to prevent a collapse of the country’s financial system after Lehman Brothers Holdings Inc. filed for bankruptcy. The government nationalized Dublin- based Anglo Irish in January 2009 after the lender was battered by losses from the collapse of the country’s real estate bubble. Ireland, which has injected 22.9 billion euros ($31 billion) into the bank, will outline the bailout’s final cost this week.
“Moody’s expects a continued asset quality deterioration in the loan book of Anglo Irish that will require further government support,” Ross Abercromby, vice president and lead analyst for Anglo Irish at Moody’s, said in today’s statement. “In the absence of explicit government guarantees, the senior unsecured debt ratings could be further downgraded.” Moody’s rates anything below Baa3 as sub-investment grade.
The ratings company reduced its rating on Anglo Irish’s mortgage-covered bonds to A2 from Aa2.
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Jim Sinclair’s Commentary
A fine and well based suggestion.

Czech president tells UN to stay out of economics Sat Sep 25, 2010 11:01pm BST
By Louis Charbonneau
UNITED NATIONS, Sept 25 (Reuters) – Czech President Vaclav Klaus on Saturday criticized U.N. calls for increased "global governance" of the world’s economy, saying the world body should leave that role to national governments.
The solution to dealing with the global economic crisis, Klaus told the U.N. General Assembly, did not lie in "creating new governmental and supranational agencies, or in aiming at global governance of the world economy."
"On the contrary, this is the time for international organizations, including the United Nations, to reduce their expenditures, make their administrations thinner, and leave the solutions to the governments of member states," he said.
Klaus appeared to be responding to the address of the Swiss president of the General Assembly, Joseph Deiss, who said on Thursday at the opening of the annual gathering of world leaders in New York that it was time for the United Nations to "comprehensively fulfill its global governance role."
Deiss suggested the world body should get more involved in economic and financial issues and not leave them solely in the hands of forums like the Group of 20 club of key developed and developing nations.
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"We have no patrol units. There is no one on the streets. We respond to only crimes in progress. We don’t respond to property crimes." - Ashtabula County, Ohio Deputy Sheriff Ron Fenton, as quoted by Maclean’s, September 22, 2010