thestatedtruth.com | February 27, 2010
David Kotok: A Euro Bull Waiting For Storm To Pass Written by Lara Crigger - February 26, 2010 11:56 AM David Kotok is the co-founder, chairman and chief investment officer of Cumberland Advisors, a New Jersey-based money management firm. His thoughts on the financial markets have appeared in various media outlets, including CNBC, the [...]
thestatedtruth.com | February 27, 2010
thestatedtruth.com | February 27, 2010
www.ingerletter.com
thestatedtruth.com | February 27, 2010
Bad seats, hey buddy….or Freddie as the case may be! www.ingerletter.com
thestatedtruth.com | February 27, 2010
Written by Lara Crigger - Posted February 27, 2010 Dennis Gartman is the mind behind The Gartman Letter, a daily newsletter discussing global capital markets. For over 20 years, The Gartman Letter has tackled the political, economic and social trends shaping the world’s markets, and Gartman himself is a frequent guest on CNBC, Bloomberg and [...]
thestatedtruth.com | February 27, 2010
Bernanke is now joining Rosenberg, Ferguson and Faber, Edwards, Grice and many others in warning that the debt crisis rearing its head in Greece may spread to America, causing U.S. interest rates to climb. As the Washington Times wrote yesterday: With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned Congress on Wednesday that the [...]
thestatedtruth.com | February 27, 2010
“By increasing the volume of their government securities and loans and by lowering Member Bank legal reserve requirements, the Reserve Banks can encourage an increase in the supply of money and bank deposits. They can encourage but, without taking drastic action, they cannot compel. For in the middle of a deep depression just when we [...]
thestatedtruth.com | February 26, 2010
Cumberland Advisors Commercial Real Estate: More Trouble Ahead February 26, 2010 “Between 2010 and 2014, about $1.4 trillion in commercial real estate loans will reach the end of their terms. Nearly half are at present underwater that is, the borrower owes more than the underlying property is currently worth. Commercial property values have fallen [...]
thestatedtruth.com | February 25, 2010
The divergence has accelerated as the recession has deepened! Unfortunately, the employment trends depicted in the nearby chart are not the trends that typically produce national prosperity. If government employment were to continue rising while private sector employment fell, the economy would become less productive…at least that would be our guess. (Picture the post office operating [...]
thestatedtruth.com | February 25, 2010
Tracy Residents Now Have To Pay For 911 Calls Posted February 25,2010 Tracy, California residents will now have to pay every time they call 9-1-1 for a medical emergency. But there are a couple of options. Residents can pay a $48 voluntary fee for the year which allows them to call 9-1-1 as many times as [...]
thestatedtruth.com | February 24, 2010
From the floor of the New York Stock Exchange, Art Cashin talks about early week comments from Ex Fed Chairman Alan Greenspan and SF Fed President Janet Yellen……….Not good, to say the least! WASHINGTON — Former Federal Reserve Chairman Alan Greenspan said on Tuesday the U.S. economic recovery was “extremely unbalanced,” driven largely by high earners [...]
thestatedtruth.com | February 24, 2010
It is hard to even comprehend that breakfast sales accounted for $57 billion in revenue. However, with more people out of work many are skipping breakfast or eating at home. On my early morning drives I will always see cars pulling up to McDonalds or Starbucks for that early morning purchase. The lines seemed a [...]
thestatedtruth.com | February 24, 2010
WASHINGTON—U.S. new-home sales unexpectedly fell in January, setting a record low and erasing all gains made in the market during the past year as the economy recovers from recession. Demand for single-family homes fell 11.2% from the previous month to a seasonally adjusted annual rate of 309,000, the Commerce Department said Wednesday. Economists surveyed by [...]
thestatedtruth.com | February 24, 2010
This should pretty much tell the story on copper and the recovery, Goldman has the inside track on many things. Goldman Sachs Closes Copper Bet on Recovery Outlook By Stuart Wallace Feb. 24 (Bloomberg) — Goldman Sachs Group Inc. ended its recommendation to bet on higher copper prices because of concern that economic recovery [...]
thestatedtruth.com | February 24, 2010
This may happen sooner rather then later based on how much real estate they’re building over there (many entire new towns and cities are being built on speculation and sitting empty.) …..China’s economic growth will plunge to as low as 2 percent following the collapse of a debt- fueled bubble within 10 years, sparking a regional [...]
thestatedtruth.com | February 23, 2010
Sometimes A Picture Says A Thousand Words
thestatedtruth.com | February 23, 2010
FDIC Hits Record “Default” Level As Deposit Insurance Fund Plunges By $12.7 Billion To NEGATIVE 20.9 Billion From Dow Jones: The U.S. banking industry continued to struggle in the fourth quarter, as the number of banks on the brink of failure continued to rise and the government’s fund to protect deposits fell sharply into the [...]
thestatedtruth.com | February 23, 2010
thestatedtruth.com | February 23, 2010
thestatedtruth.com | February 23, 2010
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thestatedtruth.com | February 23, 2010
Dan Denning, Reporting From Melbourne, Australia… Recently we claimed that borrowing your way to national prosperity is a sure-fire way to servitude and political instability. Today, we aim to prove it. To do so, we cite this article from Reuters. It suggests that China is using or should use its large holdings of US Treasury [...]
thestatedtruth.com | February 23, 2010
Shiller is saying that the real estate market is artificial in nature. Sounds like the “free market” is down the drain, everything is now supported by the U.S. government. So…..what happens when the government backs off on these gift programs? The fear and logical conclusion is down we go until we find a “free market” bottom based on [...]
thestatedtruth.com | February 23, 2010
U.S. Unprepared for Cyber War, Former Top Spy Official Says By Jeff Bliss Feb. 23 (Bloomberg) — The U.S. isn’t prepared for a massive attack on its computer networks by another country, a former top intelligence official said. “If the nation went to war today, in a cyber war, we would lose, former Director of [...]
thestatedtruth.com | February 23, 2010
thestatedtruth.com | February 23, 2010
thestatedtruth.com | February 22, 2010
thestatedtruth.com | February 22, 2010
thestatedtruth.com | February 22, 2010
Quantitative Easing and the Electronic Money Printing Machine – Saying Goodbye to Historically Low Mortgage Interest Rates. Federal Reserve 95 Percent Complete on Buying $1.25 Trillion in Mortgage Backed Securities. Posted 02-22-2010 People forget that quantitative easing is a form of creating something out of nothing. This extreme form of monetary policy is called upon [...]
thestatedtruth.com | February 22, 2010
thestatedtruth.com | February 22, 2010
thestatedtruth.com | February 22, 2010
A Five-Step Guide to Contagion By Todd Harrison Feb 10, 2010 7:35 am Why European debt matters to the United States Times are tough and those struggling to make ends meet have focused their efforts close to home. That’s a natural instinct but it doesn’t change the fact that problems on the other side of [...]
thestatedtruth.com | February 22, 2010
Dr Joe Duarte February 22, 2010 How Derivative Magic Can Turn Into A Black Hole The Euro rallied for a period overnight, as rumors of a bailout package from Germany aimed at Greece surfaced. But a denial from the German Ministry of Finance knocked the European currency below Friday’s close. That’s the scenario with [...]
thestatedtruth.com | February 22, 2010
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thestatedtruth.com | February 22, 2010
February 22, 2010 By George Friedman The apparent Israeli assassination of a Hamas operative in the United Arab Emirates turned into a bizarre event replete with numerous fraudulent passports, alleged Israeli operatives caught on videotape and international outrage (much of it feigned), more over the use of fraudulent passports than over the operative’s death. [...]
thestatedtruth.com | February 21, 2010
thestatedtruth.com | February 21, 2010
Buffett’s Warning Of ”Dangerous Business” Grips Bond Insurers By Christine Richard and Darrell Preston Feb. 19 (Bloomberg) — Forewarned bankruptcies linked to infrastructure projects from Las Vegas to Harrisburg, Pennsylvania, may prove Warren Buffett’s conclusion that insuring municipal bonds is a dangerous business. Ambac Financial Group Inc., the second biggest bond insurer, faces as much [...]
thestatedtruth.com | February 21, 2010
thestatedtruth.com | February 21, 2010
thestatedtruth.com | February 21, 2010
As saying goes, it starts in California and moves east……I would think we can hang in there until the long term cycles take us back down to a more lasting bottom between 2012 and 2014. Interestingly….. President George Bush’s Treasury Secretary Hank Paulson in his new book “On The Brink” (worth reading for everybody by the way) [...]
thestatedtruth.com | February 21, 2010
IF YOU WANT CREDITABLE SOLUTIONS ……to our nation’s fiscal problems, go to a creditable source. Indiana Gov. Mitch Daniels gives his ideas for restoring our economy — which can be done, he says, without tax increases. Daniels is a man of deep thought and bold action. His state has one of the strongest balance sheets in the country, [...]
thestatedtruth.com | February 20, 2010
thestatedtruth.com | February 20, 2010
Citigroup Warns Customers It May Refuse To Allow Withdrawals John Carney Posted February 20, 2010 The image of banks locking their doors to keep customers from making withdrawals during a bank run is what immediately came to mind when we heard that Citigroup was telling customers it has the right to prevent any withdrawals from [...]
thestatedtruth.com | February 20, 2010
By Ambrose Evans-Pritchard, International Business Editor . Posted February 20, 2010 . David Rosenberg from Gluskin Sheff said lending has fallen by over $100bn (£63.8bn) since January, plummeting at an annual rate of 16pc. “Since the credit crisis began, $740bn of bank credit has evaporated. This is a record 10pc decline,” he said. Mr Rosenberg [...]
thestatedtruth.com | February 18, 2010
Gene Inger’s Daily Briefing . . . for Friday February 19, 2010: Good evening; On top of the market’s cyclical roof . . . sits tradition. Perhaps not Zero Mostel but a ‘Fiddler on the Roof’ nevertheless (and there is a slight resemblance with Bernanke I’d say; minus a couple hundred pounds). Tradition holds [...]
thestatedtruth.com | February 18, 2010
thestatedtruth.com | February 18, 2010
thestatedtruth.com | February 18, 2010
WASHINGTON (AP) – The government said Tuesday that foreign demand for US Treasury securities fell by the largest amount on record in December with China reducing its holdings by $34.2 billion. The reductions in holdings, if they continue, could force the government to make higher interest payments at a time that it is running record [...]
thestatedtruth.com | February 18, 2010
What is astonishing is the fact that America is funding a large portion of its newly issued debt by direct purchases from the Federal Reserve. In other words, as private-sector demand for US Treasuries wanes, Mr. Bernanke is creating new money so that Mr. Obama’s government can bail out insolvent financial institutions. Strangely, the American [...]
thestatedtruth.com | February 18, 2010
Comstock Partners, Inc. Economic Momentum May Have Already PeakedFebruary 18, 2010 Don’t look now, but economic momentum, as sluggish as it was, may have already peaked. Fiscal support for the economy may be more of a restraint as the year goes by, and any attempt at additional stimulus will face major headwinds as public sentiment [...]
thestatedtruth.com | February 18, 2010
Yields on risker bonds rise sharply and a string of companies cancel share flotations, raising fears that the recovery may falter in coming months. By Ambrose Evans-Pritchard, International Business Editor Published: 7:21PM GMT 16 Feb 2010 Jitters over Chinese credit tightening and default risks in Greece and Dubai are causing bond vigilantes to batten down [...]
thestatedtruth.com | February 18, 2010
If today is Tuesday, what is the day after the day before the day before tomorrow? Answer Spelled Backwards = yadseuT
thestatedtruth.com | February 17, 2010
Fast Company 10 Most Innovative Biotech Companies by Elizabeth Svoboda (Additional Reporting By Erica Westly) 1. Novartis H1N1 put a spotlight on Novartis’s success with vaccines based on cells, a process that’s faster and more reliable than the traditional method of growing viruses in chicken eggs. Novartis won EU approval to sell cell-based flu vaccines, [...]
thestatedtruth.com | February 17, 2010
U.S. vs. China: A dangerous phase has begun ……China is a formidable adversary whose ultimate strength is not its military hardware but its economic prowess, and whose diplomatic weapon is not saber rattling but great patience. By Martin Jacques / February 17, 2010 The spats between the United States and China appear to be getting more [...]
thestatedtruth.com | February 17, 2010
thestatedtruth.com | February 17, 2010
Drowning in Debt: What the Nation’s Budget Woes Mean for You Economists Predict Cutbacks, Tax Increases That ‘Aren’t Even Imaginable’ ~~~~~~~~~~~~~~~~~~ By DEVIN DWYER WASHINGTON, Feb. 17, 2010 American political and economic leaders have sounded the alarm for years about the red ink rising in reports on the federal government’s fiscal health. But now [...]
thestatedtruth.com | February 17, 2010
New wave of foreclosures by end of 2010 is feared About 4 million U.S. homeowners are 90 days or more delinquent on their loans or in foreclosure proceedings, Moody’s Economy.com says. A federal loan modification program is helping a relative few. ~~~~~~~~~~~~~~~~~~~ By Jim Puzzanghera and Don Lee February 17, 2010 Reporting from Washington [...]
thestatedtruth.com | February 16, 2010
thestatedtruth.com | February 16, 2010
Commercial Real Estate Collapse Bigger than Subprime Implosion – Why is the Market Ignoring the $3.5 Trillion Commercial Real Estate Market Implosion? Pricing in Another Bailout. Posted: Sat, 13 Feb 2010 18:41:28 +0000 Most people that follow real estate even at a cursory level have heard of the problems in commercial real estate. The enormous [...]
thestatedtruth.com | February 16, 2010
thestatedtruth.com | February 16, 2010
The Only Certain Bet in this Market is paying Down Debt. Credit Card Rates Rise as Other Interest Rates Drop. $866 Billion in Revolving Debt Still Remains. Tue, 16 Feb 2010 The global economy remains on unstable footing as we see debt problems slam the European markets with Greece in the current spotlight. Yet the [...]
thestatedtruth.com | February 15, 2010
The “Baby Boom” generation consists of people born from 1946-64, which is that big bulge in the birth rate near the center of the chart. When the 1980s arrived, those boomers were in their prime working years, and helped to push up both economic growth and stock prices. They also caused the birth rate to [...]
thestatedtruth.com | February 15, 2010
No Easy Way Back For U.S. Economy Rick’s Picks Monday, February 15, 2009 “Phenomenally accurate forecasts” We wrote here the other day that once the bailouts and misguided stimulus attempts fail, the U.S. will have to start from the gound up to rebuild the economy. “But what mechanism can be used to bring back all [...]
thestatedtruth.com | February 14, 2010
Thoughts from the Frontline Weekly Newsletter Between Dire and Disastrous by John Mauldin February 12, 2010 Path dependence explains how the set of decisions one faces for any given circumstance is limited by the decisions one has made in the past, even though past circumstances may no longer be relevant. In essence, history matters. With [...]
thestatedtruth.com | February 12, 2010
Jim Sinclair’s reply to the SocGen opinion of a Euro breakup is reviewed at the end of the article below. ~~~~~~~~~~~ Euro Area Headed for Breakup, SocGen’s Edwards Says By Alexis Xydias Feb. 12 (Bloomberg) — Southern European countries are trapped in an overvalued currency and suffocated by low competitiveness, a situation that [...]
thestatedtruth.com | February 11, 2010
A Cautious Bernanke Finally Gets It Right By: Rick Ackerman, Rick’s Picks – Posted Thursday, 11 February 2010 Rick’s Picks Thursday, February 11, 2009 “Phenomenally accurate forecasts” The stock market often swings wildly on insignificant news, but yesterday Wall Street appears finally to have taken some real news in stride, flatlining in response [...]
thestatedtruth.com | February 11, 2010
Thu, 11 Feb 2010 The FDIC provides deposit insurance at 8,099 institutions. Collectively the FDIC overlooks $13.247 trillion in assets at these institutions. Instead of feeling protected you should feel weary because the FDIC deposit insurance fund is insolvent. Now the assets at these institutions range from softer side financial instruments like CDs and regular [...]
thestatedtruth.com | February 10, 2010
FEBRUARY 11, 2010 By CARRICK MOLLENKAMP And MAURICE TAMMAN Nearly 3,000 small U.S. banks could be forced to dramatically curtail their lending because of losses on commercial real-estate loans, a congressional inquiry concluded. The findings, set to be released Thursday by the Congressional Oversight Panel as part of its scrutiny of the Troubled Asset Relief [...]
thestatedtruth.com | February 10, 2010
Here it comes…..an avalanche of trouble with municipalities……..Vallejo, a city of 117,000 on San Francisco Bay, wants to roll back salary andbenefits, cut services — and reduce debt payments. No interest would accrue for four years, and general fund principal and interest payments would be suspended for three years, the city’s workout plan states. This [...]
thestatedtruth.com | February 9, 2010
Traders Make $8 Billion Bet Against Euro Traders and hedge funds have bet nearly $8bn (€5.9bn) against the euro, amassing the biggest ever short position in the single currency. Figures from the Chicago Mercantile Exchange, showed investors had increased their positions against the euro to record levels in the week to February 2. The build-up [...]
thestatedtruth.com | February 9, 2010
Russia Vows to Defend Rights Czarist Creditors Seek Lawsuit By Helene Fouquet and Lyubov Pronina Feb. 9 (Bloomberg) — The Russian government vowed to defend our rights after French holders of czarist bonds valued at as much as 100 billion euros ($137 billion) threatened to sue the Kremlin and seize property it [...]
thestatedtruth.com | February 8, 2010
thestatedtruth.com | February 8, 2010
In the past few decades Americans have seen more and more of their income being eaten up by the housing sector of the economy:
thestatedtruth.com | February 8, 2010
And many thought we were out of the deep poop………the government will just borrow more money, there will be a new deal, not as good as the old one for social insecurity….. the dollar will fall further and China will get even more control of the U.S., without ever firing a shot. Who needs nuclear weapons when one has [...]
thestatedtruth.com | February 8, 2010
The fall of great empires have one thing in common……Too much debt! America presents unsettling parallels with the disintegration of Rome – a decline of moral values, a loss of political civility, an overextended military, an inability to control national borders, and a growth of fiscal irresponsibility by the central government. Do these sound familiar? [...]
thestatedtruth.com | February 8, 2010
This summary from John Mauldin’s “Outside The Box”, is from Simon Hunt, based in London. Simon travels to China many times a year, is an authority on copper and the Long Wave theory of cycles. Points below are summarizd and well taken in my view. In summary, global economic recovery will disappoint as set out [...]