In The News Today

Posted at 4:07 AM (CST) by & filed under In The News.

If you don’t read the newspaper you are uninformed, if you do read the newspaper you are misinformed.
–Mark Twain

Dear CIGAs,

A sense of humour on a gift table. What a relief in this Matrix virtual world we live in. That was good for a laugh this morning here in cold Joberg.

Imaginary currency is already here. It is called the dollar. The real currency of the NOW and the future is in the hands of the people and it is called Gold.

Meanwhile COT is throwing all caution to the wind to get you to panic. Some will. Some have. Both will regret that emotional response to Pavlov who along with Geobell invented MOPE’s foundations. MOPE stands for "Management of Perspective Economics."

G-8 leaders to receive books on Canova, gold coins
10:29 AM EDT, July 8, 2009

World leaders attending the Group of Eight summit opening Wednesday in Italy will each be presented with a gift from the past and one for the future.

Handmade books portraying works by Neoclassical sculptor Antonio Canova, as well as gold coins representing an imaginary future world currency will be given to the participants at the opening of the three-day summit.

There are 10 copies of the book, commissioned by Italy’s Premier

Silvio Berlusconi from the Bologna-based art publishing house Fondazione Marilena Ferrari, each with a personalized dedication for the leader who receives it.

The 28-inch by 17.5-inch (71-centimeter by 44.5-centimeter) Canova books were crafted at no cost by 23 Italian craftsmen using traditional techniques, the publishing house said. Each weighs 53 pounds (24 kilograms).

The books’ covers are decorated with white marble bas-reliefs and the volumes are bound with silk and gold thread. They include etchings and dozens of black and white photographs of Canova’s artworks, including artistic close-ups of his statues.

More…

Jim Sinclair’s Commentary

More debt into the rating tank. I wonder if there was any phony guarantees on this disaster.

Do you think the temporary (that means permanent) liquidity guarantee program will be ok’d by the FDIC (your money)?

Guarantees are not better than the guarantor is. Still, credit default derivatives are being written and referred to publicly as a measure of debt worthiness. What are these people smoking?

Fitch downgrades ratings for CIT Group, says government support is crucial

NEW YORK (AP) — Fitch Ratings downgraded its ratings for CIT Group Inc. deeper into junk status on Wednesday, saying the commercial finance and leasing provider may default on its obligations if it does not receive government aid.

CIT shares fell 23 cents, or 11.6 percent, to $1.75 in afternoon trading. The stock has traded between $1.65 and $13 during the past 52 weeks.

Fitch lowered the long-term issuer default ratings for CIT and its subsidiaries to "BB-" from "BB+" and noted that the company’s application for funding under the FDIC’s Temporary Liquidity Guarantee Program has not yet been approved.

"Today’s rating action reflects that, absent external support, CIT’s franchise value and client confidence could quickly erode and jeopardize CIT’s long-term viability," Fitch said.

Fitch also downgraded CIT’s "individual rating" to "E" from "D," which Fitch said "denotes a bank with very serious problems, which either requires or is likely to require external support."

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Jim Sinclair’s Commentary

Every time I see this I marvel at someone’s sense of humour, way of sending a message, or mistake that he will go to hell for.

G-8 leaders to receive books on Canova, gold coins
By MARTA FALCONI, Associated Press
Wed Jul 8, 10:15 am ET

ROME (AP) — World leaders attending the Group of Eight summit opening Wednesday in Italy will each be presented with a gift from the past and one for the future.

Handmade books portraying works by Neoclassical sculptor Antonio Canova, as well as gold coins representing an imaginary future world currency will be given to the participants at the opening of the three-day summit.

There are 10 copies of the book, commissioned by Italy’s Premier Silvio Berlusconi from the Bologna-based art publishing house Fondazione Marilena Ferrari, each with a personalized dedication for the leader who receives it.

The 28-inch by 17.5-inch (71-centimeter by 44.5-centimeter) Canova books were crafted at no cost by 23 Italian craftsmen using traditional techniques, the publishing house said. Each weighs 53 pounds (24 kilograms).

The books’ covers are decorated with white marble bas-reliefs and the volumes are bound with silk and gold thread. They include etchings and dozens of black and white photographs of Canova’s artworks, including artistic close-ups of his statues.

More…

Jim Sinclair’s Commentary

Yeah more debt and spending!

Spending and borrowing got us into this mess along of course with OTC derivatives which still are alive and happy.

It is madness to assume doing exactly the same thing that got us into trouble at ever increasing numbers is going to get us out of this mess. Where do we find such geniuses to lead us?

House Majority Leader open to second stimulus bill
Posted: 01:51 PM ET
July 7, 2009

WASHINGTON (CNN) – House Majority Leader Steny Hoyer said Tuesday he would consider supporting a second economic stimulus bill, but said people need to give the package that passed in February more time to work.

The second-ranking Democrat in the House of Representatives said Republican complaints that the nearly $800 billion measure has failed to boost the U.S. economy are premature.

"Certainly, I don’t think we can make a determination as to whether or not that’s been successful — certainly as successful as we want it to be, certainly not as quickly as we want it to be," Hoyer, of Maryland, told reporters. But he added, "I think we need to be open to whether or not we need additional action."

Hoyer said it was too soon to say the February stimulus bill — which passed without a single GOP vote in the House and only three in the Senate — is not working. He said job losses have "substantially decreased" in recent months, and that the recovery package has prevented many people from being laid off from their jobs.

"In fact, we believe it is working," he said. No legislation has been put forward so far.

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Jim Sinclair’s Commentary

Now here is an interesting comment on timing. I am looking at Jan 14th, 2011 and if I recall correctly Armstrong is 2011.45.

U.S. Home Prices to Fall Through 2011’s First Quarter 
By Dan Levy

July 7 (Bloomberg) — Home prices may fall in more than half of the largest U.S. cities through the first quarter of 2011 as unemployment and foreclosures rise, mortgage insurer PMI Group Inc. said.

Thirty of the 50 biggest metropolitan areas have at least a 75 percent chance of lower prices through March 31, 2011, Walnut Creek, California-based PMI said in a report today. The decline is likely to spread to “all regions of the nation” from California, Florida, Nevada and Arizona, the states most affected by the housing slump, PMI said.

“The housing market has been hit by a demand shock of high unemployment and a supply shock of distressed foreclosure sales,” LaVaughn Henry, senior economist at PMI, the fourth- largest U.S. mortgage insurer, said in an interview.

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