Hi Jim,

Knock knock, trick or treat!

CIGA BJS

Freddie Mac to Seek $6 Billion More from Taxpayers
Published: Thursday, 3 Nov 2011 | 9:54 AM ET

Mortgage finance giant Freddie Mac said on Wednesday it will seek an additional $6 billion from U.S. taxpayers following its worst quarterly loss this year.

The government-owned company reported a comprehensive loss in the third quarter of $4.4 billion, it said in a filing with the U.S. Securities and Exchange Commission. That compared with a $1.1 billion loss for the second quarter of 2011.

Despite an income of $4.6 billion, the company registered a net worth deficit of $6.0 billion, which was partly attributed to the $1.6 billion quarterly dividend payment owed to the Treasury.

Freddie Mac has drawn $72.2 billion from the government since it was taken over at the height of the financial crisis in September 2008. The government seized both Freddie Mac and larger rival company Fannie Mae as mortgage losses at the two firms piled up and threatened them with insolvency.

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Dear Eric,

CNN finally figured it out. Now they should try to hire back Greg Hunter with a significant raise.

Regards,
Jim

Gold: The hedge against political stupidity
CIGA Eric

Gold is far more than inflation/deflation hedge. Inflation and/or deflation are symptoms brought bout by the mismanagement of economy and society by centralized powers. Many choose to voice their concerns on Main Street through public assembly, while other, a very small portion of society, let the flow of capital do all of their talking.

Headline: Gold: The hedge against political stupidity

NEW YORK (CNNMoney) — Gold is said to be a hedge against inflation, deflation and all other nasty sorts of economic bugaboos. It looks like it may be a hedge against political incompetence too.

The price of gold has surged more than 7% in just the past week and a half. The yellow metal is now trading around $1,750 an ounce.

That’s still a bit lower from the all-time high of about $1,924 from just a few months ago. But experts think that a new record could be in the cards soon if the debt melodrama in Europe (As George Papandreou Turns?) continues.

The incessant chatter and gossip — will there be a referendum or not? — is only serving to make already jittery investors even more skittish. That’s a perfect recipe for a rally in gold, which is the quintessential safe haven because it’s something with tangible value … as opposed to a stock or paper currency.

Source: money.cnn.com ^[2]

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Race To Devalue
CIGA Eric

Global currency devaluation, often characterized as the fiat race to the bottom, makes gold look more attract with each passing day.

Headline: Australia Cuts Rates for First Time Since ’09 as Europe’s Crisis Hits Asia

Australia’s central bank cut interest rates for the first time since 2009 and a Chinese manufacturing index slid, stoking concern that Europe’s debt crisis is weighing on Asia’s export-dependent economies.

The Reserve Bank of Australia today reduced its key lending rate to 4.5 percent from 4.75 percent, saying Europe’s woes are starting to hit Asian trade. In China, a purchasing managers’ index fell to 50.4, the lowest level since February 2009, while South Korea reported the smallest gain in exports in two years.

Asian stocks fell for a second day as slowing growth in the region threatens to limit a global expansion already constrained by elevated unemployment in the U.S. and Europe’s crisis. The Chinese report showed a contraction in export orders, fueling speculation that Premier Wen Jiabao may loosen policies to support the world’s second-biggest economy.

Source: bloomberg.com ^[4]

Headline: ECB cuts key rate at 1st Draghi meeting

FRANKFURT, Germany (AP) — The European Central Bank has cut interest rates by a quarter percentage point under new head Mario Draghi as it tries to boost a weakening economy that’s reeling from a government debt crisis that threatens to spread from Greece.

The dramatic debut move from Draghi, which comes earlier than expected by many economists, takes the bank’s benchmark rate to 1.25 percent.

European growth is expected to slow to near in the last three months of the year, and the rate cut is aimed at preventing a slowdown from turning into an outright recession. Uncertainty from Europe’s debt crisis is a factor as business and consumers are reluctant to spend and investors are worried of the potential for more financial turmoil if Greece defaults on its debts.

The hope in the markets is that the rate cut will shore up confidence at a time when Europe is embroiled in a crisis stemming from Greek Prime Minister George Papandreou’s pledge to hold a referendum on the country’s latest bailout package.

Source: finance.yahoo.com ^[5]

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