It is much easier to just announce that you have successfully re-inflated the world economy to the cheers and applause of all the G20 media, participants and their media.
Jim Sinclair’s Commentary
Fed Said to Order Banks to Stay Mum on ‘Stress Test’ Results
By Bradley Keoun and Scott Lanman
April 10 (Bloomberg) — The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc.and other banks to keep mum on the results of “stress tests” that will gauge their ability to weather the recession, people familiar with the matter said.
The Fed wants to ensure that the report cards don’t leak during earnings conference calls scheduled for this month. Such a scenario might push stock prices lower for banks perceived as weak and interfere with the government’s plan to release the results in an orderly fashion later this month.
“If you allow banks to talk about it, people are just going to assume that the ones that don’t comment about it failed,” said Paul Miller, an analyst at FBR Capital Markets in Arlington, Virginia.
Regulators are using the tests to determine whether the 19 biggest banks have enough capital to cover loan losses during the next two years if the economy shrinks, unemployment surges and housing prices keep declining. The tests are a linchpin of the plan Treasury Secretary Timothy Geithner announced in February to bolster confidence in the nation’s banks and restore financial-market stability.
Geithner has likened the stress tests to those used by doctors to evaluate a patient’s health. They’re designed to mesh with the administration’s effort to remove distressed mortgage assets from banks’ balance sheets. The Fed is overseeing the administration of the tests, people briefed on the matter say.
Jim Sinclair’s Commentary
Physical demand increases sharply while physical supply falls, yet the COMEX Fake Paper Gold market runs the price as it pleases.
South Africa Mining Output Falls by Most in a Decade
By Carli Lourens
April 9 (Bloomberg) — Mining production in South Africa, the world’s biggest producer of platinum, fell by the most in more than a decade in February after metal and diamond prices declined.
Output dropped 12.8 percent in February from the same month a year ago, Statistics South Africa said on its Web site today.
Metal prices tumbled from records last year as the recession curbed demand and discouraged production. Platinum, mainly produced in South Africa, declined 40 percent in the past year, prompting producers including Lonmin Plc to suspend mines.
Gold output advanced 2.7 percent, the Pretoria-based agency said. The price of the metal climbed to $993 an ounce in February, close to its $1,032.70 record last year.
The value of total mineral sales slid 2.2 percent to 17.1 billion rand ($1.9 billion) in January.