Jim Rogers - I'm short a really big bank right now

It Just Went From Bad To Far, Far Worse As Germany Says Italy Is Too Big For EFSF To Save, Refuses To Carry Euro Bailout Burden

Remember when we said (yesterday) that Germany will soon balk over the fact that it is pledging its entire economy to bail out an insolvent Europe? Well, that moment has come.

• German Govt: Italy Too Big For EFSF To Save - Spiegel
• German Govt: Doubts Whether Tripling EFSF Would Help It Save Italy
• German Govt: Italy Must Make Savings, Reforms To Exit Crisis - Spiegel
• Italy Debt Guarantee Could Raise Doubts Over Germany's Finances - Spiegel
• German Govt: EFSF Should Only Help Small, Mid-Size Countries - Spiegel

 

 

Jim Rogers - I'm short a really big bank right now

Watch the bears video to see who...
Warning...Bad Language but you better listen to this...

 

 

 S&P downgrades U.S. Treasury paper! Excerpts: "United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt Burden; Outlook Negative Overview · We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating." and "The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case." Get ready for a roller coaster ride on Wall Street next week, most likely with a concurrent leg down on the US Dollar Index. Remember that the bylaws of many pensions funds mandate that they invest only in AAA bonds!

 

 

ECB As European Lender Of Last Resort = Institutional Purveryor Of A Pan-European Ponzi Scheme

Posted by : Reggie Middleton

Post date: 08/06/2011 - 16:33

If today's broad market actions is confusing you, it shouldn't be.

 

 

 

We Warned You About S&P Too 

Posted by: Econophile

Post date: 08/06/2011 - 14:33

We told you the downgrade was coming, too.

 

 

China Tells US 'Good Old Days' of Borrowing Have Ended

China bluntly criticized the United States on Saturday one day after the superpower's credit rating was downgraded, saying the "good old days" of borrowing were over.

 

 

 

 

The Official Calls For Change Start Rolling In: "Fire Geithner"

The first official demand for a change at the top as a result of the S&P downgrade has come in, courtesy of Indiana State Treasurer Richard Mourdock, who has just demanded the head of the most incompetent and tax evading Treasury Secretary in US history, on a silver platter. "President Obama should fire U.S. Secretary of the Treasury Tim Geithner over the debt downgrade. If Obama won't remove him, then the US Senate should withdraw its consent of Geithner's appointment to U.S. Treasury because someone in the White House needs to be held responsible for this disaster." Zero Hedge fully endorses this suggestion.

 

Emergency Meetings Galore: ECB To Hold Crisis Conference Sunday, G20 To Hold Call At 2230 GMT Tonight

For a world that has supposedly largely priced in the US downgrade, the amount of emergency conference calls this weekend is a little disturbing. First, tonight at 22:30 GMT the G20 deputy finmins will hold a conference call It to "exchange of information and opinions." Next tomorrow sometime the ECB will hold a separate call in "response to the latest developments in the euro zone's debt crisis, an ECB source said on Saturday." Somehow we think the tangential topic of the historic US downgrade may also be breached. And, as always, the market is sure to be delighted with the outcome of this latest political hodge podge of responses to what is increasingly shaping up like a market perfect storm of epic proportions.

 

 

Goldman Cuts S&P 500 Price Target, Charts The Market's 10% Correction

Like clockwork, the Wall Street reactionaries confirm that when it comes to predicting the future, and/or actually having a proactive stance, one better look elsewhere.  In responde to last week's 10% correction, first Goldman's economics team downgrades the economy and floats its demands for the SS QE3, next its FX teams downgrades the USD, and finally Joseph Cohen replacement David Kostin cuts his price target on the S&P. To wit: "We reduce our year-end 2011 price target to 1400 from 1450 and our 2012 EPS estimate to $102 from $104, due to lower global GDP growth estimates. Our 2011 EPS estimate remains unchanged at $96. S&P 500 trades 12% below its April peak and has experienced its 15th correction of at least 10% since 1975 reducing the forward P/E to 12.0X our top-down EPS estimates and 11.3X consensus bottom-up estimates. Current valuation is consistent with support levels in October 2008, July 2010 and our uncertainty-based P/E fair value, suggesting further risk is more likely reliant on negative earnings revisions than further multiple contraction." We can only hope that at least someone knows what Wall Street's sell side is paid millions of dollars for. Alas, it is not us.

 

 

 

First Response To Downgraded "Non-Event": Saudi Tadawul Down 5.5%

Submitted by Tyler Durden on 08/06/2011 - 12:08 Capital Markets Crude Saudi Arabia

Those seeking a harbinger of what may be in store for global capital markets come Sunday 5 pm should look to Saudi Arabia where the Tadawul just dropped by over 5% today.

Steps You Can Take to Protect Yourself From "Hurricane Reality"

Saturday, August 06, 2011 – by Anthony Wile

Anthony Wile Last week I discussed the nature of the "time taxers" and how easy it is for people to blindly be lulled into living their life in service of the State – or those who control it. And in that editorial I suggested that time, being the most precious commoditty of all, is ours and ours alone to spend as we individually see fit – but that it takes knowledge of the world around us to separate the wheat from the chaff, so to speak.
Having said that, this week's editorial will deal with some personal ideas and beliefs with respect to how people can protect their wealth amidst a global decline in confidence in fiat currencies – one that is justly going to propel the downward trajectory of them all and none more rapidly than US dollar.
Now it has been said many times before that knowledge is power. And certainly that is true. However, I would argue that it is a certain type of knowledge – free-market thinking in its purest form – that enables one to perform a macro assessment of the world around them and to adequately predict the likely impact of major geopolitical actions and events on the overall business cycle. It involves assessing the dominant social themes being spun by the parasites who desire to siphon off the productivity of others by promoting the masses on an array of solutions to their manufactured fear-based problems. It involves a realistic assessment as to whether the larger segment of the population that tend to "dream" rather "think" will hand over their wealth and savings to the "dream weavers."
Read More

S&P Downgrades U.S. Debt Rating

August 6, 2011, at 9:02 am
by Jim Sinclair

Dear Friends,
We now enter an entirely new phase the gate to which is $1,784 gold.
Jim

WSJ.com’s inside look at the markets  
August 5, 2011, 8:36 PM ET
S&P Downgrades U.S. Debt Rating — Press Release
- Standard & Poor’s took the unprecedented step of downgrading the U.S. government’s “AAA” sovereign credit rating Friday in a move that could send shock waves through global. The following is a press release from Standard & Poor’s:
- We have lowered our long-term sovereign credit rating on the United States of America to ‘AA+’ from ‘AAA’ and affirmed the ‘A-1+’ short-term rating.
- We have also removed both the short- and long-term ratings from CreditWatch negative.
The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.
- More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.
- The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed.
Some highlights from the S&P Press Release:
“The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed.”
More…. 

No Top in the Gold Price, Next Target is $1764

August 6, 2011, at 8:19 am
by Jim Sinclair in the category General Editorial |  Print This Post |  Email This Post

My Dear Extended Family:
It was Friday evening in London when I wrote this piece after excusing myself from the GATA conference festivities to report back to you.
I will be back at my post in the AM on Saturday ready for the battle ahead, assuring you in the process that victory is ours.

Allow me simply to summarize what exists in the gold market at the present time.
1. There are no signs whatsoever of a top in the gold price.
2. When $1,650 was selected mathematically based on probabilities it was simply the first level off the bottom that might have offered a top. It has not.
3. The key number in the gold market is $1,764.
4. As gold approaches that number you can anticipate furious but very short price reactions.
5. Thursday and early today you may have witnessed the last great attempt of the Short Cabal to discredit gold shares.
6. Various member of the voluntary Short of Gold Shares Cabal are quietly looking towards the exit.
7. There are quite a few hedge funds now seeking quality gold share positions where the leverage might exceed the percentage leverage left in gold itself.
8. Dean Harry Schultz said that I should call him when gold trades at $2,400.
9. Stay near your phone my dear friend of more than 45 years, Dean Harry.
10. Alf Fields, a man a great integrity, went silent two years ago because he did not want to publish short term interim highs that might have lost gold positions for the less than fleet of foot. Before Alf went quiet he spoke of $3,000 plus. I believe Alf to be the man to watch, if he will speak.
11. The compromise crafted by the US Senate and House by which the debt ceiling was raised is the event that has broken confidence in US financial management internationally. History books will point that out as the low point of judgment in this entire drama.
12. As long as the good Lord permits me, I will be by your side. My job is not to pontificate but to identify resources for you. Every trade has two events. One is in and the other may be diversification. I dedicate myself to seeing that clearly for you. A virtual reserve currency is coming. You will not be able to own or trade that virtual reserve currency as you have been able with the dollar. Gold will be attached to that virtual reserve currency via a broad measure of world liquidity. It will be something akin to a planetary measure of liquidity as M3 was in the past for the dollar. That linkage, which is not convertibility, will translate into price, but no central bank of any nation will need to add to or delete from their then reserves.
The Goldmans of the world will invent OTC derivatives and maybe even a listed second derivative to speculate on word liquidity via the gold price. There will be no 1980 type collapse in the gold price. Over valuation which occurs in all bull markets might be by 20%. This will result in producing gold mining shares becoming the utilities of 2016 onward.

Respectfully,
Jim

Past Reflections of Jim the New Reality in Gold

August 6, 2011, at 9:11 am
by Greg Hunter 

Jim,
I don’t expect you to post this, but I too found a way to use the video you sent me.
Check out how I set it up.

Here’s the link: http://usawatchdog.com/global-stock-sell-off/

You are the MAN!!!!

Your friend,
Greg

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