In The News Today

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Jim Sinclair’s Commentary

Rumor has it that these derivatives were primarily manufactured by the Squid so of course they will remain in the dark.

Are they still open? Who is winning on them? How much has been lost on them and by whom?

The files would inflame no market if the transactions had been closed, so one can assume they are wide open with profits and losses

ECB Tells Court Releasing Greek Swap Files Would Inflame Markets
By Elisa Martinuzzi and Gabi Thesing – Jun 14, 2012 9:32 AM GMT-0300

The European Central Bank said it can’t release files showing how Greece may have used derivatives to hide its borrowings because disclosure could still inflame the crisis threatening the future of the single currency.

Bloomberg News is suing the ECB to provide the documents under European Union freedom-of-information rules. The papers may help show the role EU authorities played in allowing Greece to mask its deficit for almost a decade before the nation’s troubled finances necessitated a 240 billion-euro ($301 billion) bailout and the biggest debt restructuring in history.

Disclosing the files when Bloomberg News first sought them in 2010 would have “fueled negative perceptions about Greece’s ability to honor its debt,” ECB lawyer Marta Lopez Torres said at a hearing of the European Union’s General Court in Luxembourg today. “It’s the same now with Spain” which “isn’t able to borrow money,” she said. “Markets are reacting in very volatile ways. It’s affecting the euro economy.”

Greece may seek to leave the euro if parties opposed to the austerity measures imposed with the rescue win elections on June 17. Meanwhile, Spain’s 10-year borrowing costs jumped to a euro- era record today after the nation’s credit rating was cut to one step above junk by Moody’s Investors Service following Prime Minister Mariano Rajoy’s request for bank aid this week.

“Markets will perform better when they have transparency,” Timothy Pitt-Payne, lawyer for Bloomberg News, told the court. “The question is who knew what; and when did they know it?”

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Jim Sinclair’s Commentary

"Draghi was a key executive at Goldman at precisely the time when none other than Goldman Sachs was hired to create and facilitate the active hiding of the true extent of the Greek debt problem."
– Max Keiser

 

Jim Sinclair’s Commentary

I thought this revelation was crystal clear from day one. Who do you think flushed Lehman at that infamous weekend meeting?

Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
Thursday, June 14, 2012

Following the 2008 financial crisis, the Federal Reserve provided more than $4 trillion in near zero-interest loans and other help to banks and businesses whose executives also served as directors for the national bank.

At least 18 current and former Fed regional bank directors had a direct stake in the trillion-dollar bailout given to teetering institutions, according to a report produced by the Government Accountability Office, but released by Senator Bernie Sanders (I-Vermont).

“This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” Sanders said in a prepared statement. “At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks.”

Sanders wants to end the potential conflicts of interest that come with having bank executives serving on the Fed’s boards. The senator introduced legislation in May that would prohibit banking industry and business executives from serving as directors of the Fed’s 12 regional banks.

To bolster his case, Sanders cited the example of Jamie Dimon, chief executive officer of JPMorgan Chase. A director of the Federal Reserve Bank of New York since 2007, Dimon was part of the Fed’s leadership when it approved $391 billion in emergency funds to JPMorgan Chase to help it through the Wall Street chaos.

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Jim Sinclair’s Commentary

Maybe on behalf of humanitarian principles we should now bomb Egypt, again reinstating the no fly zone…

Free elections, what BS. Does anybody really believe this MSM/MOPE?

Egypt Justice Ministry authorizes civilian arrests by military
The decision, published in the official gazette, would remain in effect until a new constitution is in place, but the process of writing a constitution has hit snags.
By Maggie Michael  / June 13, 2012

Egypt’s Justice Ministry on Wednesday gave the country’s military police and intelligence agents the right to arrest civilians over wide range of suspected crimes, including "resisting authorities," sparking charges that the country’s military rulers want to extend their grip on power even after handing over to civilians.

The decision comes during heightened tensions in Egypt, three days before a highly polarized presidential runoff election and a day before rulings by the country’s highest court that could dissolve the Islamist-dominated parliament and even cancel the Saturday-Sunday presidential vote.

The decision, published in the official gazette, would remain in effect until a new constitution is in place. The process of writing a constitution has hit snags. On Tuesday the Islamist-dominated parliament voted on an assembly to draft the document, but liberals boycotted the session. An earlier attempt to name the body collapsed because of opposition from liberals. Both times they charged that Islamists were unfairly dominating the procedure.

Military analysts said the military arrest powers were a temporary measure intended to fill a security vacuum resulting from last year’s uprising, when the police force collapsed and disappeared from the streets during the first days of the mass protests.

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Jim Sinclair’s Commentary

QE to infinity is as sure as death and taxes. Right now the Administration might wonder if the Fed plans to sink them.

U.S. Foreclosure Activity Increases 9 Percent in May According to RealtyTrac® U.S. Foreclosure Market Report
Overall Foreclosure Activity Exceeds 200,000 for First Time in Three Months; Foreclosure Starts Increase Annually for First Time Since January 2010
June 14, 2012 00:01 ET

IRVINE, CA–(Marketwire – Jun 14, 2012) – RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for May 2012, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 205,990 U.S. properties in May, an increase of 9 percent from April but still down 4 percent from May 2011. The report also shows one in every 639 U.S. housing units with a foreclosure filing during the month.

"U.S. foreclosure activity has now decreased on a year-over-basis for 20 straight months including May, but the jump in May foreclosure starts shows that it’s going to be a bumpy ride down to the bottom of this foreclosure cycle," said Brandon Moore, CEO of RealtyTrac. "Based on the rise in pre-foreclosure sales we’ve seen so far this year, a higher percentage of these new foreclosure starts will likely end up as short sales or auction sales to third parties rather than bank repossessions going forward. While pre-foreclosure sales have less of a negative impact on home values than bank-owned sales, they still represent a discounted sale where a distressed homeowner is losing his or her home.

"Disposing of distressed homes by pre-foreclosure sale can also benefit lenders and servicers because pre-foreclosure homes sell at a higher average price point than bank-owned homes," Moore continued. "Our first quarter foreclosure sales report showed that the average price of a pre-foreclosure home was more than $27,000 higher than the average price of a bank-owned home — which quickly adds up given that there have been an average of 1.6 million nationwide foreclosure starts per year for the past five years.

"More banks are now recognizing that treating the problem of delinquent mortgages with short sales rather than bank repossessions can help them minimize their losses and also avoid taking on more REOs, which they then have to manage, maintain and market for sale."…

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Jim Sinclair’s Commentary

The gold market will turn your beard white as it makes its way to $2111 and well beyond.

Prepare yourself.

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Jim Sinclair’s Commentary

The new normal for the entire Western world, with special thanks to all the OTC derivative manufacturers and distributors.

Let’s hear it for MSM MOPE via financial TV.

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