In The News Today

Posted at 3:42 PM (CST) by & filed under In The News.

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Jim Sinclair’s Commentary

QE to infinity.

Planned layoffs surge in January: Challenger
NEW YORK | Thu Feb 2, 2012 9:48am EST

(Reuters) – The number of planned layoffs at U.S. firms surged in January to its highest level in four months as retailers and financial firms cut jobs, a report on Thursday showed.

Employers announced 53,486 planned job cuts last month, up 28 percent from 41,785 in December, according to the report from consultants Challenger, Gray & Christmas, Inc.

January’s job cuts were also up from the same time a year ago, gaining 38.9 percent from the 38,519 layoffs announced in January 2011.

A surge in job cuts at the start of the year is not unusual, the report said. January is historically the heaviest month of cuts, averaging 101,084 layoffs between 1993 and 2001.

Retail companies cut 12,426 jobs, the largest amount for the sector in two years. The layoffs were due to store closings and other cost-cutting measures, rather than an exit of seasonal workers, which are typically not announced cuts.

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Jim Sinclair’s Commentary

You doubted QE to infinity. You ridiculed $1650 as being impossible and its advocate as being a screwball.

Now we are headed into the $1700 to $2111 range on our way to Alf’s numbers.

Bernanke: Fed will protect U.S. economy from Europe
By Annalyn Censky @CNNMoney February 2, 2012: 10:56 AM ET

NEW YORK (CNNMoney) — The recovery remains "frustrating slow" in the United States, and now Europe’s debt crisis is posing additional challenges, Federal Reserve Chairman Ben Bernanke told Congress Thursday.

"Risks remain that developments in Europe or elsewhere may unfold unfavorably and could worsen economic prospects here at home," Bernanke told the House Budget Committee.

But he also assured lawmakers that the Fed is doing everything in its power to prevent an economic slowdown in the U.S.

"We are in frequent contact with European authorities, and we will continue to monitor the situation closely and take every available step to protect the U.S. financial system and the economy," Bernanke said.

Europe’s debt problems started in Greece more than two years ago, and the situation there has yet to be fully resolved.

Repeating points he has made before Congress in prior appearances, Bernanke told the committee members that while cutting the national debt should be a priority over the long term, they should also take great care not to impede the current economic recovery.

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Jim Sinclair’s Commentary

What other kind of a financial crisis is there? The slow train wreck precedes the condition described as crisis.

Crises have been times of actions that are designed not as solutions but as mechanisms to kick the can down the road.

2012 is a year of actions with consequences on a road marked dead end. 2014 is the year of the true dead end.

Ben Bernanke: Possibility of Sudden Fiscal Crisis

Click here to watch the video…