Posted: Oct 06 2010 By: Jim Sinclair Post Edited: October 6, 2010 at 11:20 am
Filed under: In The News
Trader Dan’s Commentary
This is precisely what we have been warning would occur with the vicious cycle created by the Fed’s Quantitative Easing monetary policy. The result of that policy has been a huge influx of speculative money flows into the commodity sector pushing up food prices across the board. We have argued at some point soon, the rising cost at the wholesale level as indicated by the CCI and the futures boards would translate into higher retail prices for consumers, who are already being pinched by stagnant wages and falling net worth. The result – consumers are forced to retreat on spending with the next result – a slowing economy – with the next result – more Quantitative Easing – with the next result – more rising prices as currency induced inflation in essentials rises further compounding the problem as the cycle repeats itself.
As long as the market is convinced that the Fed is going to set off another round of QE, it will go after the Dollar driving it lower forcing money into commodities making life miserable for a large swath of the American citizenry. The decision by the monetary authorities to deliberately sacrifice the Dollar is going to come back and haunt all of us for years to come.
Middle Class Slams Brakes on Spending By SARA MURRAY
Middle-class Americans made their deepest spending cuts in more than two decades, slashing spending on such discretionary items as restaurant meals and alcohol during the recession.
Households in the middle fifth of the population sliced their average annual spending to $41,150 in 2009, the Labor Department said Tuesday in its annual spending breakdown. That was down 3.1% from 2007 and 3.5% from 2008, the steepest one-year drop since records began in 1984. The drop came even as those households’ after-tax income remained relatively stable over the two years, at an average $45,199.
Meanwhile, the poorest Americans spent more as prices for necessities like food and rental housing climbed. Spending rose 5.6% from 2007 to 2009 for the poorest fifth of consumers, the most of any other income group, despite a 5.5% drop in after-tax income to an average $9,956 a household. In some cases, elderly people and others with low incomes dipped into savings or relied on credit to get by.
"What you’re looking at here is people at the bottom trying to hang on," said Timothy Smeeding, public affairs professor and director of the Institute for Research on Poverty at the University of Wisconsin in Madison. "You can’t go below a certain level."
Average annual expenditures for people in all income groups dropped 2.8% from 2008 to 2009, the first spending decline on record. The numbers don’t account for inflation, which has been significant in some areas such as food and rent. One consistently rising cost for all income groups was health care, where spending rose 9.6% from 2007 to 2009 as the cost of care climbed.
More…
Jim Sinclair’s Commentary
Make sure you understand the difference between the isolated Deutsch Bank case and the RICO class action on those items which represent the collateral behind securitized mortgage debt.
What is a mortgages asset worth if it is in default and cannot be foreclosed on? The answer is nothing. The FASB says it is worth cost or more.
This thing is unwinding at the seams.
Foreclosure Furor Rises; Many Call for a Freeze By DAVID STREITFELD and GRETCHEN MORGENSON
Published: October 5, 2010
The uproar over bad conduct by mortgage lenders intensified Tuesday, as lawmakers in Washington requested a federal investigation and the attorney general in Texas joined a chorus of state law enforcement figures calling for freezes on all foreclosures.
Representative Nancy Pelosi, the House speaker, and 30 other Democratic representatives from California told the Justice Department, the Federal Reserve and the comptroller of the currency that “it is time that banks are held accountable for their practices.”
In a request for an investigation into questionable foreclosure practices by lenders, the lawmakers said that “the excuses we have heard from financial institutions are simply not credible."
Officials from the federal agencies declined to comment.
Texas Attorney General Greg Abbott, a Republican, sent letters to 30 lenders demanding they stop foreclosures, evictions and the sale of foreclosed properties until they could provide assurances that they were proceeding legally.
More…
Jim Sinclair’s Commentary
Currency Induced Cost Push Inflation is right in front of your eyes, hiding in plain sight. Try copper, crude and general equities as three incipient examples.
Now do you understand?
Currency war on the horizon. IMF chief Dominique Strauss-Kahn joined those warning that governments are risking a currency war if they try to manipulate exchange rates to solve domestic problems. The issue of exchange rates is already on the agenda as the G-20 gathers for upcoming meetings in Washington of the IMF and World Bank. A Treasury official declined to comment on specific currency issues, such as Japan’s recent intervention on the yen, and said the decision to discuss exchange rates is in line with officials’ talks last year about letting market forces help dictate rates as the global economy rebalances.
Jim Sinclair’s Commentary
This speaks directly to the character or lack thereof of the collateral behind securitized mortgage debt.
It has really hit the fan.
Foreclosure Crisis: 23 States Halt Foreclosure As Officials Review Bank Practices
Bank ‘Robo-Signers’ Apparently Reviewed Thousands of Foreclosures a Week By MATT GUTMAN and BRADLEY BLACKBURN
Oct. 4, 2010
As millions of Americans struggle under an epidemic of foreclosures, evidence has surfaced suggesting that some of the biggest banks are barely paying attention before signing documents that will push people out of their homes.
Officials at some big banks now admit that so-called "robo-signers" were signing off on thousands of foreclosures a day without actually looking at the details of any of the cases.
State Official Moonlights as Robo-Signer
ABC News obtained a copy of multiple signatures attributed to a Florida lawyer moonlighting as a robo-signer. She had a day job in the Florida Attorney General’s office, she somehow managed to vet some 150,000 mortgages in three years. If she worked every day of every year, that would amount to over 130 mortgages a day.
"It appears that most of the mortgage (companies) in fact did use robo-signers," said Mark Zandi, chief economist for Moody’s Analytics. "It was a way to try to facilitate the process. They’ve been overwhelmed by the foreclosed properties, and this was their way of trying to get through those problems as fast as they could."
More…
Jim And Trader Dan Discuss The Coming Financial Hurricane With King World News
Filed under: In The News
Trader Dan’s Commentary
This is precisely what we have been warning would occur with the vicious cycle created by the Fed’s Quantitative Easing monetary policy. The result of that policy has been a huge influx of speculative money flows into the commodity sector pushing up food prices across the board. We have argued at some point soon, the rising cost at the wholesale level as indicated by the CCI and the futures boards would translate into higher retail prices for consumers, who are already being pinched by stagnant wages and falling net worth. The result – consumers are forced to retreat on spending with the next result – a slowing economy – with the next result – more Quantitative Easing – with the next result – more rising prices as currency induced inflation in essentials rises further compounding the problem as the cycle repeats itself.
As long as the market is convinced that the Fed is going to set off another round of QE, it will go after the Dollar driving it lower forcing money into commodities making life miserable for a large swath of the American citizenry. The decision by the monetary authorities to deliberately sacrifice the Dollar is going to come back and haunt all of us for years to come.
Middle Class Slams Brakes on Spending By SARA MURRAY
Middle-class Americans made their deepest spending cuts in more than two decades, slashing spending on such discretionary items as restaurant meals and alcohol during the recession.
Households in the middle fifth of the population sliced their average annual spending to $41,150 in 2009, the Labor Department said Tuesday in its annual spending breakdown. That was down 3.1% from 2007 and 3.5% from 2008, the steepest one-year drop since records began in 1984. The drop came even as those households’ after-tax income remained relatively stable over the two years, at an average $45,199.
Meanwhile, the poorest Americans spent more as prices for necessities like food and rental housing climbed. Spending rose 5.6% from 2007 to 2009 for the poorest fifth of consumers, the most of any other income group, despite a 5.5% drop in after-tax income to an average $9,956 a household. In some cases, elderly people and others with low incomes dipped into savings or relied on credit to get by.
"What you’re looking at here is people at the bottom trying to hang on," said Timothy Smeeding, public affairs professor and director of the Institute for Research on Poverty at the University of Wisconsin in Madison. "You can’t go below a certain level."
Average annual expenditures for people in all income groups dropped 2.8% from 2008 to 2009, the first spending decline on record. The numbers don’t account for inflation, which has been significant in some areas such as food and rent. One consistently rising cost for all income groups was health care, where spending rose 9.6% from 2007 to 2009 as the cost of care climbed.
More…
Jim Sinclair’s Commentary
Make sure you understand the difference between the isolated Deutsch Bank case and the RICO class action on those items which represent the collateral behind securitized mortgage debt.
What is a mortgages asset worth if it is in default and cannot be foreclosed on? The answer is nothing. The FASB says it is worth cost or more.
This thing is unwinding at the seams.
Foreclosure Furor Rises; Many Call for a Freeze By DAVID STREITFELD and GRETCHEN MORGENSON
Published: October 5, 2010
The uproar over bad conduct by mortgage lenders intensified Tuesday, as lawmakers in Washington requested a federal investigation and the attorney general in Texas joined a chorus of state law enforcement figures calling for freezes on all foreclosures.
Representative Nancy Pelosi, the House speaker, and 30 other Democratic representatives from California told the Justice Department, the Federal Reserve and the comptroller of the currency that “it is time that banks are held accountable for their practices.”
In a request for an investigation into questionable foreclosure practices by lenders, the lawmakers said that “the excuses we have heard from financial institutions are simply not credible."
Officials from the federal agencies declined to comment.
Texas Attorney General Greg Abbott, a Republican, sent letters to 30 lenders demanding they stop foreclosures, evictions and the sale of foreclosed properties until they could provide assurances that they were proceeding legally.
More…
Jim Sinclair’s Commentary
Currency Induced Cost Push Inflation is right in front of your eyes, hiding in plain sight. Try copper, crude and general equities as three incipient examples.
Now do you understand?
Currency war on the horizon. IMF chief Dominique Strauss-Kahn joined those warning that governments are risking a currency war if they try to manipulate exchange rates to solve domestic problems. The issue of exchange rates is already on the agenda as the G-20 gathers for upcoming meetings in Washington of the IMF and World Bank. A Treasury official declined to comment on specific currency issues, such as Japan’s recent intervention on the yen, and said the decision to discuss exchange rates is in line with officials’ talks last year about letting market forces help dictate rates as the global economy rebalances.
Jim Sinclair’s Commentary
This speaks directly to the character or lack thereof of the collateral behind securitized mortgage debt.
It has really hit the fan.
Foreclosure Crisis: 23 States Halt Foreclosure As Officials Review Bank Practices
Bank ‘Robo-Signers’ Apparently Reviewed Thousands of Foreclosures a Week By MATT GUTMAN and BRADLEY BLACKBURN
Oct. 4, 2010
As millions of Americans struggle under an epidemic of foreclosures, evidence has surfaced suggesting that some of the biggest banks are barely paying attention before signing documents that will push people out of their homes.
Officials at some big banks now admit that so-called "robo-signers" were signing off on thousands of foreclosures a day without actually looking at the details of any of the cases.
State Official Moonlights as Robo-Signer
ABC News obtained a copy of multiple signatures attributed to a Florida lawyer moonlighting as a robo-signer. She had a day job in the Florida Attorney General’s office, she somehow managed to vet some 150,000 mortgages in three years. If she worked every day of every year, that would amount to over 130 mortgages a day.
"It appears that most of the mortgage (companies) in fact did use robo-signers," said Mark Zandi, chief economist for Moody’s Analytics. "It was a way to try to facilitate the process. They’ve been overwhelmed by the foreclosed properties, and this was their way of trying to get through those problems as fast as they could."
More…
Jim And Trader Dan Discuss The Coming Financial Hurricane With King World News
Filed under: King World News
Dear Friends,
This afternoon Trader Dan was interviewed by Eric King, of King World News in regards to ongoing developments affecting the gold market especially related to growing concerns associated with mortgage backed CDO’s. The interview is entitled, “Norcini, Sinclair – Financial Hurricane to Collapse the System”.
Click here to read the interview on King World News…
Thoreau, RICO & Mortgage Fraud
Bullion’s Rampage Crushes Doubters
More "Change You Can Believe In"...
Do you really believe the Government will continue to feed you, when they are Bankrupt and have little or no food reserves? Look what happened during Katrina, now multiply it times 50 States...Fill your pantry and freezer...Today...or you might live to regret it very soon...And make damn sure you have some 1 Ounce Silver Rounds .999 pure...
Do you really believe the Government will continue to feed you, when they are Bankrupt and have little or no food reserves? Look what happened during Katrina, now multiply it times 50 States...Fill your pantry and freezer...Today...or you might live to regret it very soon...And make damn sure you have some 1 Ounce Silver Rounds .999 pure...
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![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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