Jim Sinclair’s Commentary
Nothing has changed. It is all smoke and mirrors as our esteemed leaders kick the can one more time down the now dead end road.
Dear Jim
"As many as a quarter of a million foreclosures that should have happened in 2010 will now be pushed into the 2011 numbers, and added to an already huge supply of bank owned properties. The four biggest banks already have close to $7 billion worth of foreclosed properties (REO) on their books, and Fannie and Freddie have about $24 billion collectively."
CIGA UR – Sell
The Foreclosure Dump
By: Diana Olick
CNBC Real Estate Reporter
It’s coming, no question.
Today’s report from RealtyTrac serves as a warning to big banks, Fannie, Freddie and local communities; The foreclosure glut is coming, and they’d better be ready to get rid of that glut in a big way.
2010 saw a record number of bank repossessions, over a million, even with a big drop in volume toward the end of the year, thanks to the robo-signing scandal and ensuing foreclosure freezes.
"Early indications in January were that this robo-signing related delay will be over by the end of first quarter if not sooner," says RealtyTrac’s Rick Sharga. "I think we’re going to see a significant spike in foreclosure activity early in 2011, and that will contribute in part to 2011 being a record year."
Deficits Carry Consequences
CIGA Eric
When spending exceeds revenue collected, layoffs within the public sector are inevitable. These are the consequences of the well-established vicious cycle in the US Federal Budget Deficit – The Formula.
The public has been told for years that deficits do not matter. They do, unfortunately. Even when the printing press, through timulus and special programs, maintains and protects public employment and services, it devalues the curreny and generates inflation.
US Federal Budget (Surplus or Deficit As A % of GDP, 12 Month Moving Average) and Gold London P.M. Fixed: 
Gold adjusted or real revenues continues to contract at a faster rater than real spending. This places greater pressure on centralize funding, i.e. the printing press, to fill the spending void to maintain the standard of living within the public sector.
Real or Gold Adjusted Federal Total Receipts 12-Month Moving Average (TR12MA) AND Federal Total Receipts 12-Month Moving Average Year-over-Year Change (TW12MA12LN) 
Real or Gold Adjusted Federal Total Outlays 12-Month Moving Average (TO12MA) AND Federal Total Outlays 12-Month Moving Average Year-over-Year Change (TW12MA12LN) 
Headline: Camden, NJ braces for deep police, fire cuts
Yet another crisis is upon this burdened city, among the most impoverished and crime-ridden in the country.
Deep layoffs of city workers go into effect on Tuesday — cutting up to 383 jobs, or one-fourth of the city’s employees.
The exact number depends on whether public workers’ unions make last-minute concessions. In any case, the cuts are likely to be deep — and could be a blow to the quality of life in a city where more than half the 80,000 residents, mostly black and Hispanic, live in poverty.
Source: finance.yahoo.com
