Jim Sinclair’s Commentary

Thought from the interior bush of Africa:

The Irish bond auction found a good reception.  Sure it did. That reception is called the one trillion euro rescue fund.

Jim Sinclair’s Commentary

Please study this chart carefully before you buy the bull that the euro has more problems than the US dollar. That simply is not true.

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Jim Sinclair’s Commentary

Seeking Alpha carried this item from the num- nut think tank. How a national bureau can publish such academic dribble escapes me.

Wall Street Breakfast: Must-Know News
by Joseph McCafferty

Its official, recession ended in June 2009. ^[2] The National Bureau of Economic Research, the official arbiter of when recessions begin and end, determined that what is now called The Great Recession ended in June 2009. ^[3] Having begun in December 2007, it is the longest downturn since World War II. The decision was made by the Business Cycle Dating Committee of the NBER. The committee also decided that any further downturn of the economy would be considered a new recession, rather than a continuation of the recession that began in December 2007.

More… ^[4]

Jim Sinclair’s Commentary

How can anyone question our position of QE to infinity?

Under QE to infinity the US dollar is trashed.
Under QE to infinity the gold price smashes through my estimate of $1650 made many years ago.
Under QE to infinity every mineable one million ounces of gold in the ground is worth one billion six hundred and fifty million dollars less the cost of extraction and processing.

Gold shares are going to take the lead in equities for a long time to come. The gold mining business is simply too profitable to be ignored.

Gold is going to a minimum of $1650 and all else is purely noise.

Noise does not make you money. Trading noise is for amateurs. Trading trends is for the professional. Ask Jesse Livermore, Ben Smith and Bert.

Fed Mulls Trillion-Dollar Policy Question
Monday, 20 Sep 2010 | 1:56 PM ET

How much of a boost to the U.S. recovery could another trillion dollars or two buy?

That’s a tricky question for the Federal Reserve when it meets Tuesday to debate what would warrant pumping more money into the financial system.

To battle the financial crisis, the Fed bought $1.7 trillion of longer-term Treasury and mortgage-related bonds, supplementing its pledge to keep interest rates near zero for a long time.

All told, it helped stabilize a collapsing financial system and to avert what could have been a second Great Depression.

Now, faced with a 9.6 percent jobless rate and below-target inflation, Fed policymakers are trying to gauge how much they could achieve if they resume massive quantitative easing.

Few analysts expect the Fed to launch a new round of bond buying this week, and uncertainty over the impact of fresh moves may be a factor keeping the central bank on the sidelines.

More… ^[5]

Jim Sinclair’s Commentary

Volcker won it all while Greenspan and Bernanke gave it all away.

The OTC derivative dealers gave us perma-poverty and an untouchable class of citizens..

U.S. Loses No. 1 to Brazil-China-India Market in Investor Poll
By Mike Dorning – Sep 20, 2010 9:01 PM MT

The U.S. has fallen behind emerging markets in Brazil, China and India as the preferred place to invest, a Bloomberg survey shows, though the worlds largest economy still ranks highest of all major developed countries.

The U.S ranked first three months ago in the last quarterly Bloomberg Global Poll. Along with the slipping perceptions of the U.S. markets in the most recent survey, conducted Sept. 16-17, poll respondents say the Federal Reserve is likely to take further steps to try to bolster the economy.

In the September poll of 1,408 investors, analysts and traders who are Bloomberg subscribers, respondents rate the U.S. fourth for potential returns over the next year, behind Brazil and China, tied for first, and India, in third place.

The U.S. economic situation is obviously unsustainable, and the concerted attempt to suspend disbelief is playing increasingly poorly abroad, says poll respondent Eric Kraus, chief strategist for Otkritie Brokerage House in Moscow. One can delay, but no one can forestall the unwind of a multidecade credit bubble.

Economic reports released since the June poll show U.S. GDP growth slowed to 1.6 percent in the second quarter from 3.7 percent in the first quarter. In the final quarter of last year, GDP grew at a 5.0 percent annual rate.

More… ^[6]

Jim Sinclair’s Commentary

Why foreclose on what you can neither value nor sell?

It was GMAC that provided most of the credit on cash for clunkers no matter what kind of foreign or domestic vehicle you bought.

This is not good for the financial health of GMAC.

Ally’s GMAC Mortgage Halts Home Evictions in 23 States
By Denise Pellegrini – Sep 20, 2010 5:21 AM PT

Ally Financial Inc.’s GMAC Mortgage unit told brokers and agents to halt foreclosures on homeowners in 23 states including Florida, Connecticut and New York.

GMAC Mortgage may “need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to the document, addressed to GMAC preferred agents.

The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.

GMAC Mortgage ranked fourth among U.S. home-loan originators in the first six months of this year, with $26 billion of mortgages, according to industry newsletter Inside Mortgage Finance. Wells Fargo & Co. ranked first, with $160 billion, and Citigroup Inc. was fifth, with $25 billion.

GMAC was created in 1919 to provide financing for buyers of General Motors Co.’s vehicles. GMAC converted into a bank holding company in 2008 as it received more than $17 billion of government funds during the financial crisis. It rebranded itself Ally Financial last year, and continues to offer auto loans and mortgages.

More… ^[7]

Jim Sinclair’s Commentary

Yes this is bad but US citizens have no idea of how bad it really is. It is unfortunately thanks to one singular cause, the damn over the counter derivatives.

Wall Street being driven by blind greed changed a normal four year economic contraction into the disaster of a lifetime.

This is far from over.

For Sale: Welcome to United States of Tent Cities