CBO Recommendation to Munis – Default!

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BofA Scrambling To Dump $1 Billion In Mortgage Paper

 

Volatility Curve Snaps Back To April 2010 Levels On Rumors Of Goldman Offloading Spot Vol

 

With Bond Yields Continuing Their Push Higher, What To Expect For Stocks Next?

 

David Rosenberg On Perception Versus Reality

 

Moody's Warns There Is Increased Likelihood Of Negative Outlook To US AAA Rating In Next 2 Years

 

Last Week The ECB Bought A Whopping €2.7 Billion In Sovereign Bonds

 

Oh Yeah, BABs...

 

$7.8 Billion POMO Ends, Fed To Pass $1 Trillion In Treasury Holdings On December 21

In the News

Posted: Dec 13 2010     By: Jim Sinclair      Post Edited: December 13, 2010 at 12:17 pm
Filed under: In The News

Jim Sinclair’s Commentary
The international investment banks made the most over the shortest time in gold in the period 1979-1980. They are about to do a repeat performance of that period. Nothing changes, only faces. Goldman Sachs predicts $1,690 in 2011. A short time ago it predicted $1,650 but added $40 to the price to be unique.
Gold actually could hit $1,764, but $1,650 will be seen as a fulcrum point.
I guess that “Our Crowd” has respect for Bert Seligman’s kid.

Goldman Sachs Predicts Best Commodity Returns for 2011 in Precious Metals
By Maria Kolesnikova – Dec 13, 2010 5:12 AM PT
Precious metals will probably give investors the best returns among commodities in the next year, and livestock the worst, Goldman Sachs Group Inc. said.
Precious metals will advance 28 percent over 12 months and livestock 4 percent, London-based Jeffrey Currie, Allison Nathan and other Goldman analysts said in a report today. The team raised its 12-month forecast for the S&P GSCI Enhanced Total Return Index to 18 percent from 16 percent, mostly because of changes to agricultural estimates.
“Extreme weakness in U.S. demand over the past two years has allowed China to grow unconstrained without any competition for raw materials,” the Goldman analysts said in the report. “This is likely to change in 2011 with a stronger U.S. that is likely to bump up against a China that is consuming dramatically more commodities than pre-crisis.”
More…



Jim Sinclair’s Commentary
The jiggle goes on. How about California, New York, Illinois and 37 other states of the monetary United States of America?

Moody’s says outlook for Spanish banking system remains negative owing to weak capitalization
By Ciaran Giles
MADRID (AP) – Ratings agency Moody’s said Monday it was keeping a negative outlook on Spanish banks because their capitalization, profitability and access to market funding are expected to remain weak amid Europe’s unresolved financial crisis.
The agency expects the banks’ credit conditions to stay difficult for at least 12 months as Spain weathers fierce market pressure amid speculation it might need a bailout like Ireland. Spain is struggling to emerge from nearly two years of recession. Its bloated deficit has forced sharp cutbacks in investment, and the unemployment rate of nearly 20 percent is the highest in the euro zone.
Moody’s Investors Service said the negative trend is fueled by Spain’s difficult economic conditions, shakier prospects of loan repayment and the government’s fiscal austerity plans, which threaten to sap growth.
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Jim Sinclair’s Commentary
This is confirmation of what was said here when it occurred. The bank stress tests both in the US and EU were cartoons to please the markets. Management of Perspective Economics (MOPE) at its best – total crap at its worst. Thank you FASB for selling your souls to the only buyers.

Banking | 13.12.2010
Stress tests doubted as Ireland suffers from bank bailout
Ireland is floundering under the expense of its bank bailout, but Irish banks passed the EU-wide stress tests in July. Some now dismiss the tests as nothing more than a ‘placebo’ for the market.
When the EU-wide bank stress test results were made public in July, skepticism soon followed. After all, just seven of 91 banks failed, leading some to believe the tests had been too easy.
None of Ireland’s banks failed. Yet the country floundered under the sheer expense of bailing out and reforming its financial system. In private, the chief financial officer of a European bank recently referred to the stress tests conducted over the past year as nothing more than a “placebo for the market.”
Gerhard Hofmann, a board member of the National Association of German Cooperative Banks (BVR), is skeptical about the accuracy of the tests. He isn’t aware of any cases in which they “actually had a high level of revelatory value, or a high level of predictive power in regards to future problem areas,” he told Deutsche Welle. “What is put under stress today is most likely not tomorrow’s problem.”
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Jim Sinclair’s Commentary
Faulty hardware? You have to be kidding? What Wiki has done is to initiate worldwide cyber war. Wait until it hits banks and brokerage houses or maybe exchanges themselves.
The hackers are enabled. This story is far from over

Amazon websites outage was due to hardware failure
LONDON | Mon Dec 13, 2010 12:08am EST
LONDON (Reuters) – Amazon.com Inc’s websites in Europe suffered an outage for more than half an hour on Sunday night, in what the company said was a hardware failure in its European data center network.
“The brief interruption to our European retail sites earlier today was due to hardware failure in our European datacenter network and not the result of a DDOS attempt,” a spokeswoman for Amazon told Reuters.
Amazon was among the first U.S. firms to pull the plug on WikiLeaks since it began publishing thousands of U.S. diplomatic cables, withdrawing hosting services last week after being questioned by the U.S. Senate Homeland Security Committee.
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Jim Sinclair’s Commentary
The world is in great shape. This would only draw the US in as it did once before -
that is if there was any South or North Korea left after they start throwing nukes at each other. Maybe General MacArthur’s idea of a nuked 38th parallel is still going to happen

Ex-US intel chief: S Korea may act against North
(AP) – 20 hours ago
WASHINGTON (AP) — South Korea is losing patience with North Korea and probably will take military action, former national intelligence director Dennis Blair said Sunday.
Blair, who just returned from the Korean peninsula, said he doesn’t see a major war starting, but he believes recent aggression by the North will press South Korea into some lower level military confrontations.
He said there’s support among South Koreans for their military to take a stronger stance, adding that “a South Korean government who does not react would not be able to survive there.”
More…

Guest Post: Funeral Music For The Euro-zone?

 

Virginia Judge Finds Obama Health Care Law Unconstitutional

 

ECB Considering Requesting A Rise In Capital

 

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