Jim Sinclair’s Commentary

The Chicken Spa, a key item for self sufficiency.

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Jim Sinclair’s Commentary

Five so far this weekend.

Regulators Close Four Banks & One Questionable Credit Union
Jul 15, 2011 – 11:49 PM by Ken – Bank Deals Guy

Four small banks were closed by regulators this Friday, and on Monday the NCUA liquidated a small and bizarre credit union. That raises the number of 2011 bank failures to 55 and the number of 2011 credit union failures to 12. Last year at this time there had been 96 bank failures and 10 credit union liquidations.

Georgia added to its lead as the state with the most bank failures this year. Two of the four bank failures were in Georgia which brings the total number of 2011 Georgia bank failures to 16. The third bank failure today was in Florida. Last year Florida had the most bank failures, but this year, it’s far behind Georgia with only 7 failures. The last closure today was in Arizona.

The FDIC arranged for other banks to assume all deposits of the four failed banks. The only exception was some brokered deposits.

The most interesting closure this week was the NCUA’s liquidation of Vensure Federal Credit Union. The NCUA placed this credit union into conservatorship on April 15th, and soon after that news came out about its involvement with internet gambling. According to this Credit Union Journal:

Vensure is on pace to earn $4 million this year handling poker bets for its largest depositor Trinity Global Commerce, which processes bets for the two biggest online poker sites, PokerStars.com and FullTiltPoker.com. With no loans on its books, that amounts to 99% of its income.

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Jim Sinclair’s Commentary

QE to infinity via creative tangential accounting.

U.S. Fed balance sheet hits record size
Fri Jul 15, 2011 2:00am IST

NEW YORK, July 14 (Reuters) – The U.S. Federal Reserve’s balance sheet grew to a record size in the week ended July 13 as the central bank bought more bonds in an attempt to support a fragile recovery, Fed data released on Thursday showed.

The central bank’s $600 billion Treasury-buying scheme, known as QE2, ended on June 30. It now has to buy Treasuries under a program using the proceeds from maturing agency bonds and mortgage-backed securities.

The Fed’s balance sheet — a broad gauge of its lending to the financial system — rose to $2.862 trillion in the week ended July 13 from $2.853 trillion in the week ended July 6.

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