The U.S. Goes Back to the Gold Standard.


US Mint Running Out of Silver (and Excuses)


International Forecaster September 2010 (#4) - Gold, Silver, Economy + More

By: Bob Chapman, The International Forecaster - 12 September, 2010 There is no question the US monetary system is in serious trouble and the situation continues to deteriorate. The smug elitist owners of the system are not getting the desired results and there is great consternation among the players. Since 1913 in running US monetary policy the Fed has had one recession after another and two depressions. The second one is the one we are now in. Full Story

Gene Arensberg: Swap dealers flat for silver, not overbought

 

The Deflation vs Hyperinflation Debate On Steroids, Or Mish vs Gonzalo Lira In The Octagon

 

Why The Real, Not Nominal, Consumer Debt Burden Will Push The US Economy Lower And Force The Fed To Accelerate Its Monetary Intervention

 

Coxe Advisors Discusses Ben Ben's Big Blues, Recommends Further Shift Away From Stocks

 

Homebuyer tax credit: 950,000 must repay



Outlook Gloomy at Secret Billionaire Meeting. “They saw the United States in a long-term slow growth environment with the near-term risk of recession quite real,”



The Lights Have Officially Gone Out in the US


Sustainability Key to Global Economic Health, World Leaders Warn


DeLaughter Says Food Inflation to Drive Farmland Demand

  

Elite Flee Drug War in Mexico's Number Three City.

Fort Worth pension bubble will blow up in our faces


DiNapoli: Local governments face huge jump in pension costs.


President Obama Plans to Cut Social Security Next.

 

 Jim’s Mailbox

Posted: Sep 12 2010     By: Jim Sinclair      Post Edited: September 12, 2010 at 12:20 pm
Filed under: Jim's Mailbox
Once-trendy Melrose Avenue shopping area losing its cachet CIGA Eric
An article forwarded to me by Jim from the LA Times uses words such as ’stay tuned’ and ‘this will not end well’ to describe the urgency in the decline in commercial real estate. Do not dismiss this description as ’shock and awe’ commentary used to foster an illusion. The following chart illustrates both the size and speed of deterioration of commercial real estate loan market. Commercial real estate loans as a percentage of total bank credit have fallen below 17% from recent highs near 19% in 2009. Year over year contraction rates are approaching 10% in 2010.
As the LA Times suggests, stay tuned! Further deterioration here could quickly snowball into another massive bailout.
Breakdown of total Bank Credit:
Commercial property is usually purchased in short-term loans–much different from the 15-30 year fixed rate loans on homes. When the term of a commercial loan is over, the loan is either re-negotiated under current interest rates, or the property is sold. But how do you sell commercial real estate that has fallen in value so steeply that the outstanding loan amount exceeds the salable price? You can’t.
When customers don’t come, businesses have to close. When enough businesses close, landlords, try as they might, cannot find tenants. When landlords can’t find tenants, they default on their loans. What happens when enough banks who are too heavily invested in commercial real estate suddenly start having huge portions of their investment portfolios going sour (again)? Stay tuned…
It would appear that Los Angeles is entering phase two of this cycle. The great social experiment that was the State of California appears to be lost in an ever-accelerating death spiral. This will not end well.
Source: articles.latimes.com
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