Loading ...I am beginning to think that we may be only a few weeks from a major bank failure and possibly a run on the dollar.
If this is the case, the Fed may have bigger fish to fry than tinkering with the gold market.
I am very concerned with the present economic conditions at the moment as well.
PIMCO’s McCulley sees Fed holding rates this year
NEW YORK, June 11 (Reuters) - PIMCO managing director Paul McCulley said on Wednesday the Federal Reserve will unlikely increase short-term U.S. interest rates this year despite tough inflation talk from Fed officials in recent days.
“I don’t think the Fed will hike rates this year. There is no latitude to hike interest rates this year,” McCulley told CNBC television.
Although rising inflation from record oil and food prices is troubling, the U.S. economy is still “in a heap of trouble” stemming from the housing slump and fallout from the credit crunch, according to McCulley.
Asked about the European Central Bank’s stand on rates, McCulley said the ECB is much more likely to raise rates this year than the Fed.
ECB President Jean-Claude Trichet remarks about rate hikes have been “a bit more forceful,” McCulley said, adding the ECB is 20 times more likely to raise rates than the Fed.
The decline in stocks worldwide may be turning into a slaughter.
Asia/Pacific Region tonight…….
finance.yahoo.com/intlindices?e=asia
The Americas earlier today…..
finance.yahoo.com/intlindices?e=americas
And EUROPE……
finance.yahoo.com/intlindices?e=europe
Dow Jones World Stock Index
JBI
According to Credit Suisse (CS), monthly option recasts are expected to accelerate starting in April, 2009, from $5 billion to a peak of about $10 billion in January, 2010. Today, outstanding option ARM loans in the U.S. total about $500 billion, about 60% of which were sold to California homeowners, according to Credit Suisse. Option ARMs were especially popular in the state, where they were heavily marketed during the boom by such companies as Countrywide Financial (CFC), Washington Mutual (WM), and Wachovia (WB).
“Most of the public is thinking that the subprime thing is over, but this is another thing waiting,” [said Chandrajit Bhattacharya, vice-president and mortgage strategist at Credit Suisse Securities].By the way, that article is not contrary to what I presented in Greenspan Conundrum In Reverse. The problems with Pay Option ARMs are negative amortization, falling home prices, and payment shock. Those are far bigger problem right now than the risk of rising interest rates on regular ARMs that are about to reset.
Bernanke has minimized the fallout from ARM resets by slashing interest rates. Negative amortization, falling home prices, and payment shock problems are another matter altogether. I have expected an acceleration of Pay Option ARM problems for quite some time. The storm is about to hit
….Fish Slapping Dance….LOL
If the western banks are unwilling or unable to finance the junior miners then I know who DOES have the wherewithal.
snip
Africo Resources Ltd. (TSX:ARL) announces that it has received a non-binding, conditional proposal from Creat Group Co., Ltd. (”Creat”), an investment enterprise group based in Beijing, China, which focuses on industrial, real estate, mineral resource and financial investments.
PS I know nothing about this company.
Long term, it is “die now, or inflate, and die later”.
What a mess. Painted themselves into a corner between a rock and a hard place!
Ideas ?
I would like to know how many in the Goldtent Community….beleive we will see a Financial Meltdown within 6 Months…….or perhaps we say by the American Election Date….
….and …or..
On a scale of 1 to 10 where Alfred E Newmont ( What me worry) is 1
….. and Terrified is 10…How are you feeling about the world Monetary Systen right now ! ?
Personally I am feeling a lot of concern here
buy some cans and lable them
“This is it”
right there on the can,
not sure what they will sell for,
or what they are full of.
pa dump pum..
ps that one was for ee
Good. Thanks. That was easy.
The Crack Up Boom, Part II
Mal Investments and Money Printing, Round 2
by Ty Andros, Editor
Tedbits Newsletter
June 11, 2008
“In conclusion:
The obligations have become UNPAYABLE on all levels of G7 society. Thus you can either DEFAULT (which precludes future borrowing) or inflate the obligations away. You can expect the G7 public serpents, er, servants, to print to save the money center and investment banks, as well as many defaulting homeowners, G7 national champion businesses (Fannie Mae, General motors, and Freddie Mac to name a few), state and municipal governments, walking zombie big businesses such as I outlined in the opening and any other big constituency which is DEPENDENT on government subsidies and financial guarantees. They will not be allowed to fail as it would be political and financial SUICIDE. Public serpents— er, servants and bankers are NOT suicidal. They are pathological predators.
Since G7 obligations are DENOMINATED in domestic currencies the solution they will take and have taken to date is they will “print the money”. It is as simple as that. They will substitute another IOU (G7 currencies) for the existing ones. Default is unthinkable as they won’t be able borrow anymore, or print money and exchange them for REAL things like imports and energy supplies. It is inflate or die, so they will inflate.
These realities are hard to accept, but the one bright spot is that YOU are aware of them. You can organize yourself in such a manner as to not be victim of them, and in fact benefit from them. Investors are in general confused as the assumptions they have been taught are NO LONGER true. BONDS and paper investments are POISON to your future. Learn how to SHORT CURCUIT the unfolding monetary debasement and confiscation of your wealth by your SOCIALIST, COLLECTIVIST public serpents and their banking masters. Markets must constantly REPRICE UP and Down to reflect the unfolding situation, creating volatility in all market sectors. VOLATILITY is OPPORTUNITY and it will unfold in spades over the coming years. You learn to make money in up and down markets, short circuit the debasement of your holdings. Its quite simple to do
Inflation will rear its ugly head over and over again in the coming years, but the public will not understand the altered relationship of their money. The day of recognition by the general public is YEARS away. They have no idea what is transpiring, nor do they know the source of the inflation problem–public servants and their banking masters. The mainstream media, public schools and your public servants have made sure you never get the straight story and that most people and their children don’t have the ability to recognize a lie said straight to their faces.
How do we know recognition is years away? Try and explain this to your friends. They will stare at you blankly! When they don’t return a blank stare you KNOW the “Crack up Boom” is at hand, at which point you must be out of all paper currencies and in GOLD or something that can’t be printed. In the meantime, inflation will continue as private and central banks pile infinite amounts of new currencies into their economies to service unpayable old debts, maturing obligations, support inflated asset values, and confiscate wealth from the citizens they are sworn to protect —to protect the value of their balance sheets and get more people onto the debt slavery rat wheel. The “Crack up Boom” looms directly ahead.
Flash: I don’t know what is transpiring but everyone at the fed and treasury are TALKING up the dollar, Richard Fisher, Tim Geithner, Helicopter Ben Bernanke, Hank Paulson. Smoke is in the air, I wonder where the fire is? I am sure we will soon find out! ”
COMPLETE EDITORIAL:
financialsense.com/fsu/editorials/andros/2008/0611.html
~ ~ ~ ~ ~
JBI
I am sure that Vic is aware of the tent. He posted on GE fairly recently that he was looking for the Banking sector to get hammered into the 4th quarter, if memory serves. I think he also told me that he had recently changed e-mail addresses and would send me his new one- but has not, as yet. If he does, I’ll be glad to pass on your invitation.
GR
Does anyone know/ know how to contact Trader Vic who used to post regularly at GE? He had a terrific, experienced take on the markets, and it was always interesting to see what he had to say about what was going on. He is not Victor Sperandeo, the trader/writer (he answered a question about that one time at GE), but he would be a wonderful addition to the tent. There are some here that have a similar hands on perspective (I won’t name names for fear of leaving out someone), but it would be great to have Vic and his views, especially in the recent and sure-to-be-continuing turbulence and surreality (if that’s not a word, it should be, and I’ll take credit for coining it!). If anyone knows him, they should invite him to the tent.
I will be broke and destitute losing another 50% of what is left