Bank of America Halts Foreclosures In All 50 States

Breaking News:
23 states have made cease and desist orders on all foreclosures. There is a call for a national cease and desist order on all foreclosure.
If the order on all foreclosures goes national, all securitized debt on mortgages is therefore of questionable value as that would mean they cannot source the collateral.
Look out for G20 BS coming this weekend. Remember there is a huge difference between coordination and accord.
Be prepared for a comparison to the Plaza Agreement of 1985 and the MOPE coming out of G20 this weekend. There is zero chance that major currencies will coordinate, let alone 20 currencies.


Jim Sinclair’s Commentary
I will give you three guesses to figure out who is short up to the gizzo.
They may be short, but they are also right.

Dollar set for sharp decline, Goldman forecasts
The dollar will embark on a sharp decline over the next 12 months, Goldman Sachs forecast on Wednesday, as policy makers in Washington look poised to press the trigger on another round of printing money. By Richard Blackden
Published: 6:00AM BST 07 Oct 2010
The investment bank expects the dollar to drop to $1.79 against the pound in six months and $1.85 in 12 months. Sterling closed at $1.5891 in London yesterday. The euro won’t be spared either, with the dollar’s slump forcing it to $1.50 six months from now and $1.55 in a year’s time.
Powered by President Obama’s stimulus package and a rebound in inventories, the US recovery peaked in the final three months of last year and has been slowing ever since.
As the summer delivered a diet of weak economic data, the conviction has strengthened among a growing number of officials at the Federal Reserve that it should risk another bout of quantitative easing – printing money to inject into the economy.
“More QE is seen as a co-ordinated effort to get the dollar lower,” said Thomas Stolper of Goldman Sachs. “It makes sense for the US.”
Separately, Goldman’s chief economist, Jan Hatzius, warned that the world’s biggest economy faces a “fairly bad” or a “very bad" scenario over the next six to nine months.
More…




Jim Sinclair’s Commentary
I don’t think you can trust this security force. This is a Wall Street type strategy in war.
Report: US Contractors Hired Iranian Spies, Taliban, Warlords To Guard US Troops In Afghanistan

Senate Investigators Say Chaotic Security Contracts Pose ‘Grave Risk’ To US Troops By MATTHEW COLE
Oct. 7, 2010
A scathing Senate report says US contractors in Afghanistan have hired warlords, "thugs," Taliban commanders and even Iranian spies to provide security at vulnerable US military outposts in Afghanistan. The report, published by the Senate Armed Services Committee, says lax oversight and "systemic failures" have led to "grave risks’ to US forces, including instances where contractors have employed Afghan subcontractors who were "linked to murder, kidnapping and bribery, as well as Taliban and anti-coalition activities." The chairman of the committee, Sen. Carl Levin, D.-Michigan, said the report was evidence that the US needs to reduce its reliance on contractors. "We need to shut off the spigot of US dollars flowing into the pockets of warlords and power brokers who act contrary to our interests," said Sen. Levin. The committee reviewed roughly 125 unclassified Department of Defense security contracts between 2007 and 2009, and found that there are some 26,000 private security contractors operating in Afghanistan, the majority of whom are Afghan nationals. The review found "systemic failures" of the military oversight for contracts, including the hiring of what Levin called "many too many" security contractors who had been improperly vetted, improperly trained or were not provided weapons.
In some cases, companies were awarded contracts though they had no ability to provide the services needed. In those cases, companies then quickly hired local nationals without proper vetting or security checks. The chaotic system left US facilities and personnel vulnerable to attack. The report found that some Afghan security guards simply walked off their posts at remote forward operating bases.
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Jim Sinclair’s Commentary
This is the most resignations for an Administration in history since all of Carter’s cabinet threatened to resign.

National Security Adviser to Resign, Officials Say By DAVID E. SANGER
President Obama will announce on Friday that Gen. James Jones, the national security adviser, is resigning and will be replaced by his deputy, Thomas E. Donilon, senior administration officials said.
General Jones’s departure had been long rumored, and he had previously indicated to his staff that he intended to leave by the end of the year. But the schedule was accelerated, and in recent weeks White House staff members had been increasingly critical of General Jones for statements that he apparently made to Bob Woodward, the author of “Obama’s Wars,” an account of the internal decision making on policy on Afghanistan and Pakistan.
Mr. Donilon began as a young political operative for President Jimmy Carter and later was chief of staff for Secretary of State Warren Christopher in the Clinton administration. He has long operated in the area between politics and national security. He coached Mr. Obama on foreign policy for his debates in the 2008 presidential campaign.
As deputy national security adviser, Mr. Donilon has urged what he calls a “rebalancing” of American foreign policy to rapidly disengage American forces in Iraq and to focus more on China, Iran and other emerging challenges. In the Afghanistan-Pakistan review, he argued that the United States could not engage in what he termed “endless war,” and has strongly defended Mr. Obama’s decision to withdraw American troops from Afghanistan next summer.
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Jim Sinclair’s Commentary
The fact that Wall Street tried to sneak a bill through to trash Main Street tells you they are scared to death of the critical weakness of securitized debt on mortgages. The collateral is so weak they actually tried to make forgery legal. The banksters make the residents of Lanka look like saints.
If it was not for the November elections it would have survived.

Obama vetoes foreclosure bill. In the first effective veto of his presidency, Obama blocked a bill that would have required state and federal courts to accept the validity of out-of-state document notarizations; the bill would have made it harder to challenge the authenticity of foreclosures and other legal documents. Opponents argued the bill would let banks involved in the recent robo-signing scandal off the hook (including such heavyweights as BofA (BAC) and JPMorgan (JPM)), and would make it harder for homeowners to stop foreclosures. Following the veto, the bill will be sent back to Congress, while regulators continue to move ahead cautiously with their investigation of banks’ foreclosure practices.

 

S&P Cuts Allied Irish From A- To BBB+

 

Tony Boeckh On The Consequences Of American Central Planning

 

BLS Issues Update On Perpetual Upward Data Bias: 366,000 Overestimate For Year Ended March 2010

 

Payrolls Plunge By 95K, Unemployment Rate 9.6%, Private Jobs Up 64K, U-6 Shoots Up To 17.1% From 16.7%