Jim Sinclair’s Commentary
Four so far today.
Bank Closing Information – October 22, 2010
These links contain useful information for the customers and vendors of these closed banks.
The First National Bank of Barnesville, Barnesville, GA
The Gordon Bank, Gordon, GA
Progress Bank of Florida, Tampa, FL
First Bank of Jacksonville, Jacksonville, FL
Jim Sinclair’s Commentary
Really, what are you worried about? Enjoy your weekend.
Gold may hit $1,850 by Dec 2011
Last updated on: October 22, 2010 13:09 IST
BS Reporter in Mumbai
Gold prices are likely to hit $1850 an ounce by the end of next year on strong demand from emerging economies and supply side constraints, Paul Horsnell, managing director of Barclays Capital said in a media briefing in Mumbai on Thursday.
Gold will first slide to $1,310-1,325 early next year on profit booking. But, the precious metal will get good buying support from central banks in Asia and West Asia regions, who are looking for opportunities to increase their gold portfolio.
Any aim to pick up gold in good volume will raise prices steadily to $1,450 by mid-next year and then the targeted $1,850 towards the end, Horsnell said.
Gold surged over 34 per cent since October 1, 2009 and 23 per cent so far this year.
Today, spot gold in London was at $1,337.17 an ounce at 1242 GMT, down from $1,343.50 the day before and down from a session high of $1,349.05 as the dollar clawed back gains against the euro.
Jim Sinclair’s Commentary
Bloomberg had an interview this afternoon with Professor Black who is the author of The Best Way to Rob a Bank is to Own One.
He could not be silenced. Professor Black said, amongst other javelins in the heart of MOPE, the following:
1. Securitized mortgage instruments are all fraudulent.
2. The Fed is holding a huge amount of these as collateral.
3. They are valueless.
4. The manufacturers of these are, under commercial and criminal statute and law, criminals.
The interviewer almost swallowed her tongue.
Gold will trade at and above $1650. QE to infinity is not a choice, it is all that is left.
Jim Sinclair’s Commentary
This is what I spoke to you yesterday about. This is QE on the down low.
Keep in mind this is Federal Reserve Management of Perspective Economics which they called "communication."
The Fed has no choice but QE to infinity. Gold will go to and beyond $1650.
More Fed easing would risk another bubble: Hoenig
Oct. 21, 2010, 11:56 p.m. EDT
By V. Phani Kumar
HONG KONG (MarketWatch) — The U.S. Federal Reserve should refrain from easing its monetary policy further as that would increase the risk of another economic bubble, Kansas City Federal Reserve’s President Thomas Hoenig said on Thursday, according to reports. Hoenig, a voting member of the Federal Open Market Committee, said he was "very unhappy" with the high level of unemployment, but added that more asset purchases could threaten the U.S. economic recovery. "If you try and bring [unemployment] down too rapidly, you are in danger of creating the next problem," Hoening said, according to Reuters. He made the remarks at the New Mexico Economic Forum in Albuquerque.
Jim Sinclair’s Commentary
How can you accept for even an instant that there is any alternative for Bernanke but QE to infinity?
Fannie, Freddie May Draw $363 Billion, FHFA Says
By Lorraine Woellert – Oct 21, 2010 5:13 PM PT
Fannie Mae and Freddie Mac, the mortgage-finance companies operating under U.S. conservatorship, could draw a total of $363 billion in Treasury Department aid through 2013 if the housing market worsens, the Federal Housing Finance Agency said.
The FHFA, which oversees the government-sponsored entities, offered the estimate today as the worst-case in an analysis modeled on the stress tests conducted on the nation’s biggest banks last year. The actual total cost to taxpayers under the regulator’s most dire scenario would be $259 billion, because almost 30 percent of the funds would come back to Treasury as dividend payments on its holdings of senior preferred stock.
Under the best-case scenario, which assumes a strong near- term recovery in the housing market, the total cost to taxpayers would be $221 billion, or $142 billion after dividends. A middle-ground scenario would require total aid of $238 billion, or $154 billion after dividends. So far the companies have drawn $148 billion and returned $13 billion in dividends to Treasury.
“These projections are intended to give policy makers and the public useful snapshots of potential outcomes for the taxpayer support of Fannie Mae and Freddie Mac,” FHFA Acting Director Edward J. DeMarco said in a statement released with the report. “The results reflect the potential effects of a limited set of hypothetical changes in house prices.”
