Gold Explodes, Futures Touch $1801

The traditional inedible religion of barbarians had been oddly patient for most of the day. No longer: next up $2000.

Gold crushing the shorts, trader tells King World News

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10 Year Prices At Record Low 2.14% As Direct Takedown Surges To All Time High 31.7%, Indirects Plunge

There were many odd things about today's $24 billion 10 Year bond auction, which just closed at an all time low yield of 2.14% (down from 2.92% in July), the pricing being just one of them. That this was a very favorable result is a given judging by the yield just following the auction which has since tumbled to the lowest ever except for yesterday's dramatic collapse in yields. At this point, courtesy of the Fed's genocidal policy, it is very possible that the 10 year could drop below 2% shortly. What was probably just as interesting about the auction was the unprecedented surge in Direct Bidder take down which soared from 13.9% to a record high 31.7%, a number not seen since the last time the world was imploding or back in May 2009, when it hit the then high 25%. The reason why Direct had to step in? A massive collapse in the Indirect Bid, plunging from 42% to 35%, the lowest since February 2010. Either the Fed's proxy account finally came out of the closet or China is now very confused and telegraphing a plunge in Indirect Bidding even as it buys up ever more via its London accounts. Either way, the first 10 Year auction since the downgrade passed with stunning success: congratulations, cherry popped.

Guest Post: Macro Commentary - The Cost of Fiat Money and Gold

Markets are trading sharply lower this morning after yesterday’s late afternoon rally on the change in language in the Fed statement that will keep short interest rates essentially at zero until 2013.  As I have stated before, I believe they will ultimately be forced to keep rates low forever, or at least until the bond market vigilantes eventually rise up and shock the world by demonstrating that indeed you can fight the fed.  Which begs the question, who will be the George Soros that breaks the US Fed?  We’ll see.  In any case, by 2013, it’s highly likely that the US will have over $16tr in debt.  If the average rate across the curve in 2013 is only 4%, which is low by any historical standard, then our annual interest payment will be over $600bn, or almost 30% of annual tax revenues.  So the Fed faces problems on a number of fronts.  They have to be seen as actively trying to do something so they continue to manipulate the price of money to artificial levels which only serves to send misleading signals throughout the economy.  QE1 and QE2 have come and gone and yet unemployment remains sticky above 9%.  Their balance sheet remains abnormally large and their policy tools to manipulate the market is dwindling.  Now add to that the reality of the math of our huge fiscal debt and deficits.  No matter which way you spin it, we have some tough times ahead that will involve some asset prices falling (commercial/residential real estate and other levered assets), other asset prices rising (agricultural land, commodities, gold/silver) and the façade that the Fed is all-powerful to come crashing to the ground.

Presenting The Key Questions To Be Answered By Bank Of America In Today's Fairholme Capital Conference Call

Ahead of today's Bank of America conference call organized by Fairholme's Bruce Berkowitz which has one purpose only: to rescue his losing investment in Bank of America, which is down almost 30% in the past week, below, courtesy of Manal Mehta, we present 6 prepared questions which we are confident will all get their due attention by Mr. Berkowitz because unless these core questions, which go to the heart of all investors fears about Bank of America, are not answered, and instead nothing but fluff is discussed, the whole exercise will lead to an even greater panic in Bank of America stock. And what would be more ironic than another 20% drop in the BAC stock during this call. Also, in addition to the questions below, we post the following, based on an analysis by Compass Point Research & Trading, which matches an analysis conducted independently by Zero Hedge, and according to which BofA could be forced to repurchase between $28.4 and $62.2 billion, or between $10.6 and $44.4 billion above the bank's current reserves, which would immediately impair the firm's Tier 1 Capital, trimming it by more than 50%, and forcing the company to immediately issue an equity follow on, which will likely lead to a stock price also about 50% lower.

Political Panic MSNBC

Eric De Groot at Eric De Groot - 50 minutes ago

Bottom line, easy solutions no longer exist. The world must learn to deal with the consequences of the sum of all actions taken since the formation of Bretton Woods system over the next 4.3 years. Is society ready? History, replete with examples chaotic and tumultuous change, says not likely. This is yet another reason why real, founding father style, leadership is needed now more than... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]




Finally...You Might and I mean Might...see some Real "Change You Can Believe In"... Especially If You Research Ron Paul's Voting Record. But I digress...The majority of my fellow American Sheeplez are too Damn Lazy or blinded by partisan politics to even think, more or less actually spend time doing a little research...

For The First Time Ever, Most Americans Don't Believe Their Congressional Rep Deserves Reelection

Following years of destroying this country and acting as a spineless proxy only for Wall Street, Congress is facing a historic event: for the first time a majority of Americans are demanding a clean out of the House. The full poll indicating that yet another bloodbath is coming during the next election season can be found here, but here is CNN's commentary. "Only 41 percent of people questioned say the lawmaker in their district in the U.S. House of Representatives deserves to be re-elected - the first time ever in CNN polling that that figure has dropped below 50 percent. Forty-nine percent say their representative doesn't deserve to be re-elected in 2012. And with ten percent unsure, it's the first time that a majority has indicated that they would boot their representative out of office if they had the chance today." Time for a radical overhaul of the utterly criminal and corrupt American political system, preferably replacing it with one that will return democracy back to the system?






David Faber, Chris Whalen and Euro Banks

Posted by : Bruce Krasting

Post date: 08/10/2011 - 12:34

The question is, "Will we make it till friday before a Euro bailout?'

Experts and great Investors

Posted by: thetrader

Post date: 08/10/2011 - 12:44

On all those Experts by www.thetrader.se

How to bring central bankers to heel? Ask them some questions

 

 

John Crudele: How to 'fix' a market

 

 

Oops! Bear Market Over (Not) 

Posted by : thetechnicaltake

Post date: 08/10/2011 - 11:24

In a wonderful piece of financial engineering, the Federal Reserve has reduced the duration of the recent bear market to 36 hours.

Filed under more Lies and Bullshit...

US Banks Face 'Headwinds' But Aren't 'Zombies': Dimon

U.S. banks may be facing "headwinds" but they are not "zombies," JPM Chase CEO Jamie Dimon told CNBC, referring to comments by well-known analyst Meredith Whitney.