Jim Sinclair’s Commentary
"Broken Bank Fridays" are going to be double digit days for a long time to come.
This is a good review.
FDIC Insured Institutions have $13.3 Trillion in Assets. 8,195 Banks and 116 Institutions Hold $10.2 Trillion of Those Assets. One out of Four Institutions Unprofitable. 1,000 Banks Will Fail or Merge.
The banking system has taken the country to the financial edge of the greatest recession since the depression. The enormous number of bad loans floating out in the economy only complicates the unemployment situation. When we look into the latest banking data, we realize that over 1,000 of current banks will fail or merge with a too big too fail bank. In fact, the total number will be over 1,000 simply because the “not too big” to fail banks heavily bet on commercial real estate loans that amount to $3 trillion.
Recent data shows that approximately 25% of all the banks insured by the FDIC are unprofitable. That number tells us that some 2,000 banks cannot turn a profit. Let us first look at the current data:
Jim Sinclair’s Commentary
CDS = Credit Default Swaps.
CDS = Major source of income to the Banksters.
CDS = OTC derivatives.
CDS = More Weapons of Mass Financial Decisions.
CDS Counter Party Risk = CDS financial fragility
CDS= Banksters simply will not stop issuing crap paper to make huge spreads ($$$)
CDS = The public be damned.
Counter party risk increases
By Aaron Cunningham
August 20, 2009, 2:43 PM ET
Counterparty risk of major financial institutions
Jim Sinclair’s Commentary
The understanding that hyperinflation is a CURRENCY EVENT is beginning to dawn.
Is hyperinflation on the way? We’re spending like there’s no tomorrow.
BY JIM BAYNE | EDITORIAL COLUMNIST
Published: August 30, 2009
The government printing presses continue to pump out currency with the backing of the federal reserve and, as a result, a bottomless pit is being created for all of us.
It is of the utmost folly to think that these spending programs by the politicians in Washington are of lasting benefit (think future tax increases) to the populace as a whole. Sure, the cars program provided a temporary boost for a few — mainly dealers who sell vehicles bearing Japanese labels — but with no substantial gain for American label manufacturers.
Reports indicate that sales prices were bumped up during this program and a large number of purchasers are having second thoughts about the added credit indebtedness they have taken on (think future repossessions).
And it should be noted that the bureaucracy was unable to manage the program with any degree of success, although they did put an additional 700 people to work to process the paperwork — you can’t do business with the government unless everything is done in triplicate, and assuming you can understand the gobbledygook language everything is written in.
But back to the business of printing paper money and the future inflation it is creating for us. We may never see the chaos that such policy created for nations like Italy and Argentina, but rest assured that we are but a short step away from seeing our currency devalued on the world markets such that the relative stability we have known in the past will be but a fond memothe concept that hyperinflation is ath
Jim Sinclair’s Commentary
Those that scream the loudest about transparency refuse to disclose and/or delay disclosure of all the pertinent facts. MOPE when it can’t MOPE facts simply hides them.
FDIC Joins Federal Reserve in Keeping Secrets from the Public
August 30, 2009
Matthew Goldstein
The Federal Reserve is fighting hard to keep details about the $2 trillion in emergency loans it has made during the financial crisis from seeing the light of day. And now it seems the Federal Deposit Insurance Corp. also has started playing the game of keeping secrets from the public.
The American Banker earlier this week reported that the FDIC is holding back on disclosing information about failed bids for troubled banks the government agency has taken over. The industry newspaper reports the FDIC is delaying the processing of Freedom of Information Act requests seeking such information, while the agency reviews its disclosure policy.
The FDIC announcement is disturbing because it comes at a time that the FDIC has been forced to close banks at a brisk clip and just put in place a plan for allowing private equity firms to bid on bank assets. (Full disclosure: my wife used to be an editor for the American Banker).
The FDIC’s position on releasing information about failed bids is not as sweeping as the Fed’s opposition to a Bloomberg News lawsuit seeking access to information about the $2 trillion in emergency loans. But as The Audit, a Columbia Journalism Review blog, point outs, the FDIC’s stance is another move towards “creeping government secrecy.
Jim Sinclair’s Commentary
Let’s see what the economic impact on the yen is.
Election rhetoric is no basis for prediction.
‘Major win’ for Japan opposition
The opposition Democratic Party of Japan (DPJ) is set for a massive election victory, exit polls suggest.
The DPJ has won 300 seats in the 480-seat lower house, ending 50 years of almost unbroken rule by the Liberal Democratic Party (LDP), NHK TV says.
DPJ leader Yukio Hatoyama said the people were "clearly fed up with the policies of the governing party".
Prime Minister Taro Aso has said he will resign as head of the LDP, taking responsibility for the defeat.
Japan is suffering record unemployment and its economy is struggling to emerge from a bruising recession.
The DPJ has said it will shift the focus of government from supporting corporations to helping consumers and workers.
Reform bureaucracy
The exit polls suggest a stunning reversal of fortune for Japan’s political parties, reducing the LDP to a rump in parliament, correspondents say.
Jim Sinclair’s Commentary
A modern run on the bank is a run on the hedge fund.
Cerberus clients overwhelmingly want out: report
Fri Aug 28, 2009 4:21pm EDT
BOSTON (Reuters) – Cerberus Capital Management has been swamped with redemption requests with the Wall Street Journal reporting that investors are asking to pull out $5.5 billion or 71 percent of assets from its hedge funds.
Cerberus last month tried to entice investors into staying with the firm, but found that its clients overwhelmingly wanted to leave, the newspaper reported.
"We have been surprised by this response," Cerberus chief Stephen Feinberg and co-founder William Richter wrote in a letter delivered to clients late on Thursday, according to the newspaper.
A spokesman for the firm was not immediately available for comment.
The bulk of investors elected to put their money into a fund that will liquidate hard-to-sell assets over time.
The news comes as several prominent hedge fund managers have closed their funds and as investors are less willing to leave their money locked up in potentially risky hedge funds.
Jim Sinclair’s Commentary
My understanding is this bill has passed in the house of the state legislative and is being presented for final vote. Those of you that reside in Massachusetts as well as any other state might like to read this bill and stay informed.
http://www.mass.gov/legis/bills/senate/186/st02pdf/st02028.pdf
Jim Sinclair’s Commentary
Just buy whatever the Chinese are buying. Works like a charm.
Change the MAY to WILL. Add to that selectively.
China demand may drive commodities higher
G. Chandrashekhar
Washington DC, Aug. 30 As major consumer of a wide variety of commodities, the industrial world has always been known for its influence over the commodity markets.
However, over the last couple of years, China has undoubtedly been the mover and shaker of the global commodities – be it energy products, base and precious metals or agriculture, with its robust economic growth and humungous imports to meet its ravenous appetite for consumption.
Even when industrial economies faced demand compression in the wake of economic meltdown and a commodity price collapse ensued in the second half of 2008, China stood out as a beacon of hope.
If there is any semblance of a global economic recovery now (in the third quarter of 2009), China has played no mean role.
Now, the influence of the Asian major on commodity markets is seen tightening, if anything. Mercifully, growth impulses in China are seen spreading to other economies as well. Stimulus packages have, no doubt, contributed to economic activity and commodity consumption as large parts of such finances have been spent on infrastructure development which is necessarily commodity-intensive.
Jim Sinclair’s Commentary
It is interesting to see the thinking of smaller central banks. Before this is all over major central banks outside of Asia will be gold buyers.
Brown will have acid reflux. SDR allocation is an international form of QE.
Ukraine to replenish its gold reserves with USD 1.5 billion
28-08-2009 15:54
The International Monetary Fund (IMF) will officially implement the recently approved general allocation of special drawing rights (SDR) among its 186 members, equivalent to about USD 250 billion, on August 28, according to a statement by Director of the IMF External Relations Department Caroline Atkinson posted on the fund’s official Web site.
Ukraine, in line with its quota in the fund, will receive USD 1.589 billion on August 28 and will transfer the funds to its gold forex reserves. On September 9, the IMF is about to implement a one-time allocation of 21.5 billion SDRs, about USD 33 billion, of which Ukraine will receive another USD 456 million.
Jim Sinclair’s Commentary
This forms the basis for the US removal of the nukes, forcefully if not handed over.
I remind you again, the surge cannot result in sustainability. Without sustainability the surge only accomplished a photo opportunity.
The media reports on this have misinformed readers. Pakistan is the greatest risk to life everywhere.
U.S. Accuses Pakistan of Altering Missiles
By ERIC SCHMITT and DAVID E. SANGER
Published: August 29, 2009
WASHINGTON — The United States has accused Pakistan of illegally modifying American-made missiles to expand its capability to strike land targets, a potential threat to India, according to senior administration and Congressional officials.
The charge, which set off a new outbreak of tensions between the United States and Pakistan, was made in an unpublicized diplomatic protest in late June to Prime Minister Yusuf Raza Gilani and other top Pakistani officials.
The accusation comes at a particularly delicate time, when the administration is asking Congress to approve $7.5 billion in aid to Pakistan over the next five years, and when Washington is pressing a reluctant Pakistani military to focus its attentions on fighting the Taliban, rather than expanding its nuclear and conventional forces aimed at India.
While American officials say that the weapon in the latest dispute is a conventional one — based on the Harpoon antiship missiles that were sold to Pakistan by the Reagan administration as a defensive weapon in the cold war — the subtext of the argument is growing concern about the speed with which Pakistan is developing new generations of both conventional and nuclear weapons.
“There’s a concerted effort to get these guys to slow down,” one senior administration official said. “Their energies are misdirected.”
Jim Sinclair’s Commentary
Right now the "Too Big to Fails" are safer (relative) than your local bank.
Banks ‘Too Big to Fail’ Have Grown Even Bigger
Behemoths Born of the Bailout Reduce Consumer Choice, Tempt Corporate Moral Hazard
Jim Sinclair’s Commentary
This article from AP is informative of expectations and therefore I am posting it.
I will not harp on this subject be it Swine (misnamed) or Bird (correct name).
It really seems as if the rape of earth and its inhabitants has angered Mother Nature. It is really a bad idea to kick Mother Nature when she is not looking. The swiftest kick has come from the banksters, but those that remain silent are equally responsible
The difference between the sheeple and the banksters is that the sheeple are poor, having or being in the process of being victimized by the banksters.
Return of swine flu: What’s ahead for Americans?
By LAURAN NEERGAARD (AP)
WASHINGTON — The alarm sounded with two sneezy children in California in April. Just five months later, the never-before-seen swine flu has become the world’s dominant strain of influenza, and it’s putting a shockingly younger face on flu.
So get ready. With flu’s favorite chilly weather fast approaching, we’re going to be a sick nation this fall. The big unknown is how sick. One in five people infected or a worst case — half the population? The usual 36,000 deaths from flu or tens of thousands more?
The World Health Organization predicts that within two years, nearly one-third of the world’s population will have caught it.
"What we know is, it’s brand new and no one really has an immunity to this disease," Health and Human Services Secretary Kathleen Sebelius says.
A lot depends on whether the swine flu that simmered all summer erupts immediately as students crowd back into schools and colleges — or holds off until millions of vaccine doses start arriving in mid-October.
Only this week do U.S. researchers start blood tests to answer a critical question: How many doses of swine flu vaccine does it take to protect? The answer will determine whether many people need to line up for two flu shots — one against swine flu and one against the regular flu — or three.
Jim Sinclair’s Commentary
This has to get the attention of the battalion of Saudi Princes used to buying off all sides.
Al Qaeda claims responsibility for attempt on Saudi prince
Posted: 02:48 PM ET
August 30th, 2009
(CNN) — In a statement, Al Qaeda claimed responsibility for an assassination attempt in which Saudi Arabian Prince Mohammed bin Nayef was injured.
A group calling itself “al Qaeda in the Arabian peninsula” said it was responsible for “an intelligence operation and security breach, the first of its kind, in the Arabian Peninsula on the Assistant Minister of Interior for Security Affairs, the criminal Mohammed bin Nayef Al Saud, who fought against Allah and his messenger and the believers.”
The prince sustained minor injuries Thursday when the suicide bomber detonated a cell phone packed with explosives at his palace in Jeddah, the Royal Court said in a statement.
The bomb was carried by a “wanted militant,” who previously expressed a desire to turn himself in, the court said. He was being searched by security when he blew himself up.
Al Qaeda said the bomber “was able to enter the palace amongst its guards and detonated himself after passing all security points in Najran airport and Jeddah.”
