Radio Show Newsletter
CHARTS OF THE WEEK-QUOTES-QUICK HITS
-If the entire financial system does not come down upon our heads and if we do not have another war, global growth is going nowhere in the years ahead. We had a mini-recovery, but it cost $1.8 trillion. We had a second recovery and that cost $1.5 trillion. We are entering a third of what is becoming yearly recoveries that will probably cost $1.3 trillion. In other worlds without these massive injections of money and credit we would probably be in a deflationary depression. Bob Chapman
–George Soros Warns Of Financial Collapse, Class Warfare And The Rise Of Evil. “At times like these, survival is the most important thing,” he says, peering through his owlish glasses and brushing wisps of gray hair off his forehead. He doesn’t just mean it’s time to protect your assets. He means it’s time to stave off disaster.
As he sees it, the world faces one of the most dangerous periods of modern history a period of “evil.” Europe is confronting a descent into chaos and conflict. In America he predicts riots on the streets that will lead to a brutal clampdown that will dramatically curtail civil liberties. The global economic system could even collapse altogether. “I am not here to cheer you up.
The situation is about as serious and difficult as I’ve experienced in my career,” Soros tells Newsweek. “We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.” Read more here-http://tinyurl.com/7xvbrbt
–IMF Cuts Global Growth Forecast; Sees Recession. The International Monetary Fund cut its forecast for global growth and warned that the European debt crisis threatens to derail the world economy. “The epicenter of the danger is Europe but the rest of the world is increasingly affected,” Olivier Blanchard, the fund’s chief economist, said at a news conference in Washington. “There’s an even greater danger, namely that the European crisis intensifies. In this case the world could be plunged into another recession.” Read more here-http://tinyurl.com/7cw5enn
-Goldman Says U.S. Data May Look Better Than They Are. A decline in unemployment and pickup in manufacturing point to accelerating U.S. growth. Some economists say the numbers may not be as good as they look. One reason: the severity of the economy’s plunge in late 2008 and early 2009 after Lehman Brothers Holdings Inc. collapsed threw a wrench into models used to smooth the data for seasonal changes, according to analysts at Goldman Sachs Group Inc. and Nomura Securities International Inc. Read more here-http://tinyurl.com/88mumk6
–Obama Calls for Higher Taxes on Wealthy. President Barack Obama, offering an election-year prescription to spur the economy, said the wealthiest Americans should pay more taxes in the name of fairness, to bring down the deficit and ensure those trying to make ends meet don’t have to “make up the difference.” In his State of the Union address, Obama called on Congress to embrace a tax plan named for billionaire Warren Buffett that would require those making $1 million or more pay at least 30 percent in taxes. Read more here-http://tinyurl.com/7cnyqno
-Under Obama, Price of Gas Has Jumped 83 Percent, Ground Beef 24 Percent, Bacon 22 Percent. Read more here-http://tinyurl.com/7owycdr
-US Post Office Needs to Cut 260,000 Jobs: Rep. Issa. The U.S. Postal Service needs to slash 260,000 jobs and end weekend delivery if it is to climb out of its “financially insolvent” condition, Rep. Darrell Issa said. Despite a mandate to avoid deficits, the post office loses up to $15 billion a year. Read more here-http://tinyurl.com/89srlnw
-Regulators close banks in Florida and Georgia. Financial regulators on Friday shuttered banks in Florida and Georgia, marking the first two bank closures of 2012. Authorities shut down Central Florida State Bank in Belleview, Fla. and the First State Bank of Stockbridge, Ga. In 2011, a total of 92 banks collapsed, compared with 157 in 2010. Marketwatch.com
-Citigroup sued for fraud over $1 billion of CDOs. Citigroup Inc was sued for fraud by Loreley Financing over nearly $1 billion worth of collateralized debt obligations purchased in 2006 and 2007. Read more here-http://tinyurl.com/6vsaf9h
-One Third of New Yorkers Can’t Retire. About one third of New York City residents nearing retirement age won’t be able to quit or will have to rely entirely on Social Security because they have less than $10,000 in savings, according to a study released. Read more here-http://tinyurl.com/6wx2lh6
-Police Use of GPS Devices to Track People Limited by U.S. Supreme Court. The U.S. Supreme Court for the first time limited police power to track people using GPS devices, ruling in a case that will shape the privacy rights Americans should expect from a new generation of wireless electronics. Read more here-http://tinyurl.com/7ybhe9p
-Rich Shoppers Are as Bargain-Hungry as Less Affluent. When it comes to shopping, the wealthy are just as interested in clipping coupons, hunting down deals, and keeping spending in check with shopping lists as less affluent consumers, according to the findings of a recent survey. Read more here-http://tinyurl.com/7vjmld3
-Economy in U.S. Preferred by Investors: Poll. Investors are turning increasingly bullish on U.S. markets as they declare its economy in better health than major rivals from Europe to Asia, according to the Bloomberg Global Poll. Read more here-http://tinyurl.com/7kdd6k5
-Capitalism Seen in Crisis by Investors Citing Inequalities. International investors say capitalism is in crisis, with almost one in three backing radical changes to the system, according to a Bloomberg survey. Read more here-http://tinyurl.com/6v8m8nz
-Subculture of Americans prepares for civilization’s collapse. Read more here-http://tinyurl.com/7kxcxlo
-Today it pays to owe money, while U.S. savers suffer. Read more here-http://tinyurl.com/74makd8
-Female Bodyguards At $45,000 A Year Are High In Demand In China. Female security details have become quite popular in China, especially among wealthy women and celebrities. About 30% of all millionaires in China are now women and they increasingly select female bodyguards for protection of their families and children instead of male bodyguards. Read more here-http://tinyurl.com/8xzvbtj
-Who Guitarist Townshend Sells Song Catalog. Pete Townshend, guitarist for the rock band The Who, sold his interest in a song catalog including “Won’t Get Fooled Again” and “Baba O’Riley” to Spirit Music Group. Read more here-http://tinyurl.com/83wvsfv
-JFK hearse sells for $160,000. A Cadillac hearse that carried the body of President John F. Kennedy to Air Force One following his assassination in Dallas was sold at a Scottsdale, Ariz., auction for $160,000. Read more here-http://tinyurl.com/7x39f99
-Giants-Patriots Super Bowl Rematch Ticket Sells for $11,883 on NFL Site. At least one ticket to the Super Bowl rematch between the New York Giants and the New England Patriots has sold for $11,883, according to the National Football League’s official resale site. Read more here-http://tinyurl.com/7luxx8z
-The Rare Colored Diamonds Historical Value Tracker system is the perfect tool for investors to view the potential future value of a rare colored diamond based on the current market trend of a particular type of diamond. Track the potential future value of colored diamonds here-http://tinyurl.com/6l4thaf
–Rarecoloreddiamonds.com Featured Diamond of the Week. This week’s Diamond is a 0.77 carat emerald cut fancy vivid yellow internally flawless. Diamonds are a way of storing wealth and moving money around easily. The best part of diamonds as an investment is enjoying it while you wait for it to appreciate. CNBC. Harold Seigel-See video of the Featured Diamond here-http://tinyurl.com/77wdn2w
-A five-carat fancy yellow diamond increased in value by 180 percent from 2001 to 2011. Compared that to Berkshire Hathaway stock, which increased by 52 percent for that 10-year period and Coca Cola, which grew 42.5 percent. A $600,000 investment in a five-carat fancy pink diamond would yield about $3 million today. Forbes
-Sotheby’s Jewelry Auction Spotlights Colored Diamonds. Gary Schuler, Sotheby’s senior vice president and head of the auction house’s jewelry department, is on a never-ending quest to procure fresh examples of some of the rarest gems on the planet: colored diamonds.
The first major sale of 2012, the Important Jewels auction in New York, to be held on February 12, wouldn’t be complete without a selection of these colored stones, which Sotheby’s clients a mash-up of hedge-fund managers, entrepreneurs, celebrities, Russian oligarchs, and China’s nouveau riche compete to acquire.
“There never seem to be enough to go around, which makes my job that much harder,” Schuler says. “Whether it’s their visual appeal, the prospect of seeing a big jump in value, or just the desire to own something that almost nobody else in the world possesses, these have become the gems that everyone covets.” Read more here-http://tinyurl.com/8yrgqx6
–Gold for Iranian Oil? Government Denies Any Comment. A reputed Israeli intelligence Internet site has claimed that India is opting for gold to repay crude oil supplies from Iran. Given the US and EU embargo on Iran, payment in hard currency, such as the US dollar or euro, is very difficult; hence, this barter. Read more here-http://www.gata.org/node/10922
-EU won’t trade gold with Iran anymore; could it really still be money after all? At a meeting of foreign ministers in Brussels, EU governments also agreed to freeze the assets of Iran’s central bank and to ban all trade in diamonds, gold, and other precious metals with the bank and other public bodies. Read more here-http://www.gata.org/node/10912
–Eric Sprott: Aggressive Chinese Buying Will Spike Gold Price. Eric Sprott, Chairman of Sprott Asset Management, had this to say about Chinese purchases of gold and the recent announcement that Iranian oil will be acquired using gold: “There are two things I think are important about that. One, it’s a statement that gold is a currency.
That is by far the most important thing. I think the other thing is, if it actually transpires that way, what does it mean for the demand for gold? Because now it’s considered currency, it’s, in essence, your working capital.
You have to have it. It’s like a store, you have to have money in the till.” “So it’s obviously going to increase the demand for gold and we have seen some data that China has been a rather large buyer of gold. People will consider it a currency and it has to necessitate more buying.
You know, I think one of the really interesting things that happened was the imports of gold into China, from Hong Kong, which always were less than 20 tons a month, all of the sudden, beginning about 5 months ago, went 20 (tons), 30, 40, 80 and in November 102 tons.
102 tons is a staggering number. The world mines, excluding China, less than 200 tons a month. China cannot continue to buy 102 tons and not have the price escalate dramatically.” Sprott had this to say about the Fed announcement that it will leave rates at zero until late 2014: “Obviously it’s dramatic what has happened.
It would appear there will be no restraint whatsoever on the part of the Fed. Assuming this announcement causes gold to break its declining wedge, which I believe it has, I expect some serious fireworks to the upside.” Read more here-http://tinyurl.com/6p4bsuc
-Jim Sinclair: Mainstream Entities Will Now Enter Gold Market. “Today is an important day. There are many days we talk but this is a mile-marker. What the Fed did today is they turned on the light of what will be QE to infinity. Today the light went on with regards to the intentions of the Fed. They did that for very specific reasons, we have troubles people can’t see and this is one of the ways out.” Read more here-http://tinyurl.com/7l2lqqd
-Leeb: Fed Game Changer Sparks 2nd Leg of Gold & Silver Bulls. “I think what the Fed said yesterday is game-changing. They are opting for inflation and what really strikes me here, is they described their dual mandate in terms of employment first and price stability second. I don’t know any central bank that would put maximum employment in front of price stability.
That’s not the mission of a central bank. Again, I think this is absolutely a game-changer.” “Inflation will be let out of the bag, maybe for the next three to four years. In this environment gold and silver are the best investments around. Resistance points on charts don’t even count anymore when you are talking about a game-changing event like this.
We are really talking about the next leg higher in this bull market. I think yesterday will go down as the beginning of the next major leg higher in the bull market. This is the leg I expect to take gold to $3,000 before the end of 2012. This is a very big change. Just step back for a moment, the Fed is keeping interest rates at zero until the end of 2014. That’s almost three years.
This is as aggressive as it gets and as bullish as it gets for gold. When you are looking at resistance points, that was pre-yesterday. Today is a new chapter that starts with the title ‘Inflation is out of the bag.’ So the question becomes where does that take gold?. Well, look at the 1970s bull in gold. After inflation really started to assert itself, gold went up another eight fold.
I think this is a critical point, the move we’ve had in gold, over the past decade, has been in anticipation of inflation. We really haven’t seen gold react yet because inflation is still tame. We’ve had eleven years of a first leg in gold. Now we get the second leg and I say hold on to your hats because ultimately you are going to put another digit on the gold price.
This is more compelling than the 70s. Keep in mind, during the 70s when real rates were decidedly negative for a long period of time gold went up eight fold. Today that kind of advance would take us well over $10,000. I maintain what we’ve seen so far is just preparation for what we are going to witness over the next five or six years as inflation ramps.
And once inflation starts to take off it will be very hard to stop. Remember, China wants to eventually back the yuan with gold. This is why they have been accumulating massive amounts of gold. I predict in two or three years you will see oil priced in yuan or some basket in which the yuan is the central currency. When the yuan becomes the world’s reserve currency they will control the game. Read more here-http://tinyurl.com/7v77ny8
-Brodsky: We’re Headed to a Point Where Gold Will Go Parabolic. We’ve made our bets and whether the market for gold is $1,500 spot or $2,000 spot or $2,500 spot, it doesn’t matter to us. We see gold is already extraordinarily undervalued given past inflation. The price of gold should be over five times than where it is currently trading. The fact that central planners are going to print more money means it should be even that much higher.” Read more here-http://tinyurl.com/89kyk9h
-John Williams: Gold, Silver, Economy & Inflation. Read more here-http://tinyurl.com/7a98fmd
-John Williams: Accelerating Great Collapse & Hyperinflation. Read more here-http://tinyurl.com/849tzlr
-Rule: Monetary System is Based on Confidence, Fraud & Force. Read more here-http://tinyurl.com/888nx8t
–James Dines: This Will be a Dangerous Collapse & Endgame. The world continues to slide into what I’ve been calling ‘The Coming Great Deflation.’ We are in a deflation and you need to prepare for it. So that’s what’s happening in terms of gold. It’s very bullish. We’re on a short-term buy signal and a long-term buy signal. The long-term Super Major uptrend is intact.” Read more here-http://tinyurl.com/76hhlzu
-Michael Pento: Money Supply to Hit $24 Trillion, More Bubbles & Higher Gold. Read more here-http://tinyurl.com/74tkr2r
-J.S. Kim: You won’t go wrong just buying real metal on the dips. Read more here-http://www.gata.org/node/10925
–Gold does best among commodities even when adjusted for volatility. Gold provided the best returns of all commodities in the past five years when adjusted for volatility, and Goldman Sachs Group Inc. says the rally will continue as options traders signal no change in the metal’s relatively low risk. Read more here-http://www.gata.org/node/10920
-Gold to keep rising until real rates go positive, Sprott’s Franklin tells MineWeb. Read more here-http://www.gata.org/node/10911
-Bullion banking system ‘not fully backed,’ Naylor-Leyland tells CNBC Europe. Watch more here-http://www.gata.org/node/10901
–Gingrich’s proposed gold standard won’t happen Murenbeeld. Dundee Wealth’s Martin Murenbeeld says GOP Presidential candidates Ron Paul’s and Newt Gingrich call for a U.S. gold standard is not realistic. Read more here-http://tinyurl.com/7tl7s8g
-How realistic are the chances of a return to a gold standard? While economists broadly do not favour a return to such a system, the general population in the US seems to be increasingly warming to the idea. Read more here-http://tinyurl.com/7v2bo72
-The overnight gold trade that is up 1,700% since 2001. Read more here-http://www.gata.org/node/10924
-Resource Clips interview with GATA’s Bill Murphy and Chris Powell. Read more here-http://www.gata.org/node/10914
-Chris Powell: Gold-market rigging has many whistleblowers; they’re just always ignored. Read more here-http://www.gata.org/node/10909
-Volcker confirms central bank need to suppress gold to stabilize exchange rates at ‘critical point.’ Read more here-http://www.gata.org/node/10926
-Andrey Dashkov: Platinum Industrial Man’s Gold. Platinum sometimes called “the richer man’s gold,” has been generating a lot of buzz lately. Historically platinum has sold for more than gold, but today it’s selling for considerably less than gold. Is this an anomaly worth betting money on? Or have market forces changed, causing a shift in the apparent price relationship between the two? To attempt an answer to these questions, let’s have a look at platinum fundamentals. Read more here-http://tinyurl.com/84b4rn7
Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00
Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00
Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67
Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00
Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33
Gold to silver ratio at 50 to 1 with gold at $2,500 the silver price would be $50.00
Gold to silver ratio at 40 to 1 with gold at $2,500 the silver price would be $62.50
Gold to silver ratio at 30 to 1 with gold at $2,500 the silver price would be $83.33
Gold to silver ratio at 20 to 1 with gold at $2,500 the silver price would be $125.00
Gold to silver ratio at 15 to 1 with gold at $2,500 the silver price would be $166.67
-“You should also own silver because it’s definitely going into three digit territory.” Stephen Leeb
-James Turk: Silver Update. When asked about silver specifically, Turk replied, “I’m really getting quite excited about the near-term prospects for silver. We’ve been talking now for a couple of months about the flag formation being formed on the weekly silver chart. The support in the low 30s is big enough to provide the base to launch silver through overhead resistance near $35.
As I said to you before, Eric, once we take out $35, I expect to see $68 to $70 in two to three months. We could have one more dip down to the $30.5 to $31 area, but if we do, I see support in that area as strong as the $1,650 level for gold.” Turk also added: “From a bigger picture perspective, the only thing we can do is let the market tell its own story. What that means is we just need to watch silver day by day to see how it develops. But as I said, we’ve been on this story now for a couple of months and it is beginning to look better and better.
With the financial world around us imploding because of sovereign debt and currency crises, I think people are going to be surprised at how well gold and silver do, not only this year, but in the near-term as well. So far this market hasn’t given much opportunity for people to enter. Sometimes you just have to take the dips, even if they are shallow, and buy them.” Read more here-http://tinyurl.com/84k3zvw
-Egon Von Greyerz: Silver Update. “Silver is leading and the gold/silver ratio is coming down quite rapidly. I think we will see a strong fall in the gold/silver ratio. This just means silver will continue to go up faster than gold. When looking at gold, on a closing basis, it has already broken out.
We might see some sideways action around these levels, but gold is breaking out and is on its way to new highs in my view. Silver has a little way to go before it breaks out, that’s around the $37 level (the breakout). But, again, the action in silver is very good and I think we could go higher quite quickly. So, overall, very good action and I think it will continue.
“I think the next few months we will see very strong action and I could see a rapid move back to the highs of $50 and then through that level, to new highs, after a bit of consolidation. So gold and silver are going to move very quickly to the upside.
This is more of a dollar move right now. If you look at gold in other currencies, it is more or less going sideways here. So the fall of the dollar is helping with this move. For gold to rise against all currencies at once is unusual, but longer-term gold will continue to rise against all of the currencies.” Read more here-http://tinyurl.com/89cbb7q
-Morris Hubbartt: Silver Set To Soar Against Everything? The fundamentals for silver are solid. Physical silver inventories are being tapped and it is questionable as to how fast they are being replaced. My dealer reports a very tight physical market. Some analysts claim that the ratio of silver being consumed vs. mined is greater than 10 to 1. I don’t know about the validity of that statement, but certainly the enormous growth in the Asian middle class and the Asian economies is a reason to hold some silver. Read more here-http://tinyurl.com/7qqmprf
-Steve St. Angelo: Silver Sales Up As Supply Slips. For the first time in history, Silver Eagle & Maple Leaf sales will surpass domestic silver production in the U.S. and Canada in 2011. Read more here-http://tinyurl.com/6rke7th
-Hubert Moolman: I Stand By $140 Silver In 2012. Read more here-http://tinyurl.com/88cqsmc
-Peter Cooper: $58-60 silver price by September says Dubai silver trader. Read more here-http://tinyurl.com/86bcssn
-David Morgan: Vancouver Resource Investment Conference Speech on Silver. Read and watch more here-http://tinyurl.com/7jue6dr
-In KWN weekly review, Norcini sees bullish signs for silver. Listen here-http://www.gata.org/node/10906
-Frank Holmes: Presentation On The China Boom, And What It Means For Commodities. Read more here-http://tinyurl.com/867hdu3
-Fed: Benchmark Rate Will Stay Low Until Late 2014. Federal Reserve officials said their benchmark interest rate will stay low until at least late 2014 and anticipate that unemployment will remain high and inflation “subdued.” “The Committee expects to maintain a highly accommodative stance for monetary policy,” the Federal Open Market Committee said in a statement released in Washington.
The Fed extended its previous pledge to keep rates low at least until the middle of 2013 as inflation remains tame and more than two years of economic growth have failed to push unemployment below 8.5 percent. Some Fed officials have said further easing might be needed to put more Americans back to work and revive the housing market. Read more here-http://tinyurl.com/72g6e7w
-Bernanke Makes Case for More Bond Buying. Ben S. Bernanke laid the groundwork for a third round of large-scale asset purchases should unemployment remain higher than the Federal Reserve would like while inflation falls below a newly-established target. The Federal Open Market Committee “recognizes the hardships imposed by high and persistent unemployment in an underperforming economy, and it is prepared to provide further monetary accommodation,” Bernanke said at a press conference in Washington. Read more here-http://tinyurl.com/79wbe56
-PIMCO’S Gross says Fed easing occurring. Bill Gross, co-chief investment officer of bond fund giant PIMCO, told CNBC that the Federal Reserve will continue to keep its monetary policy accommodative for the next 2-5 years, calling it “QE 2.5.” Gross said: “Not only will the Fed eventually buy additional securities, but it will keep this policy rate constant at 25 basis points for two, three, four, perhaps even five years. It basically signifies that the front end of the curve the twos, threes, fours, and fives, will do very well.” Read more here-http://tinyurl.com/77mrdog
-Fed’s QE3 May Be Preferred Over QE2 for Asia. U.S. monetary stimulus, blamed in 2010 for spurring speculative capital flows to emerging markets, may find less opposition this time round in Asia as the region’s focus shifts to supporting economic growth. Read more here-http://tinyurl.com/6ov5s5h
-Roubini: Europe Needs ‘Massive Monetary Easing.’ Europe needs “massive monetary easing” to get out of its debt crisis, otherwise Greece will likely abandon the euro in a year and a half, famous economist Nouriel Roubini told CNBC. “Greece is going to be the first country to restructure its debt, I don’t think it’s going to be the last one,” Roubini said at the World Economic Forum in Davos. Read more here-http://tinyurl.com/7etbvdb
-Printing Money to Lead to ‘Uglier’ End-Game: Rogoff. The euro zone is nowhere near finding a solution to the debt crisis plaguing it and needs deep restructuring as well as a new constitution as part of an effective long-term remedy as printing money will not solve its problems, Kenneth Rogoff, Professor at Harvard University told CNBC.
Rogoff said he expected to see a slow and precarious global economic recovery, with “ground zero” Europe posing the greatest risk. “They’re printing money but that doesn’t work,” Rogoff said. “I think they’re printing money and buying time and that can work for a while although it leads to an uglier end-game.” The European Central Bank has come under pressure to print money, as the Federal Reserve and the Bank of England have done, to ease the crisis. Read more here-http://tinyurl.com/7wuymny
-EU ratchets up pressure with Greek default threat. European Union officials have stepped up pressure on Greece and its creditor banks in a complex game of three-way brinkmanship, signalling that they will allow a Greek default to run its course unless both sides accept more pain. Read more here-http://tinyurl.com/6swl4dc
–Greek default is essentially a given: S&P. Greece will eventually default on its debts, even if the nation reaches a deal with the private sector to restructure its debts, according to a panel of experts. John Chambers, head of sovereign ratings at Standard & Poor’s, said that the deal being negotiated between Greece and private sector investors would “in all likelihood” qualify as a default. Read more here-http://tinyurl.com/7lfdrcl
-Steve Hanke: Greek Economy on Track to Implode. Whether or not Greece is able to reach an agreement on the restructuring of its debt, the country is set to “implode” as the economy contracts, according to Johns Hopkins University’s Steve Hanke. “The game is completely over,” Hanke, professor of applied economics. “All the calculations are nonsense and have been since day one. Since the crisis began the money supply has been shrinking and the economy is going to implode, no matter what they do in the short run.” Money supply is shrinking at an annual rate of about 16 percent in Greece, meaning there won’t be growth needed to support debt payments, Hanke said. Read more here-http://tinyurl.com/74mlqv5
-Greek Default: Why Europe Thinks It May Not Be So Bad. European leaders are beginning to accept the idea that Greece will be forced to default on its debt, causing a long-feared “credit event” that triggers billions of dollars of credit default swaps.
Financial markets have been worried for months about such an event, fearing that it would spark another financial crisis similar to the one that was triggered by the collapse of Lehman Brothers in 2008. But European leaders are becoming less worried about the impact such an event would have on the global financial system.
There are two reasons for this: an involuntary Greek default would not come as a surprise to financial markets, and the amount of money involved would be relatively small. Back in September 2008, almost no one believed the government would allow Lehman to fail, and when it did, it took market participants by surprise. Greece on the other hand has been a train wreck in slow motion. Read more here-http://tinyurl.com/7jkn5y9
-Banks Hoarding ECB Cash to Double Company Defaults. Corporate defaults may almost double in Europe as companies struggle to refinance debt and banks hoard cash borrowed from the European Central Bank or use it to buy government bonds. Read more here-http://tinyurl.com/7ync5y3
-European banks prepare for worst, hoard cash. European banks are preparing for a potential worsening of the region’s sovereign and banking crisis, with many firms stockpiling cash and cutting back on loans to new clients as they seek to protect themselves against a possible seizing-up of financial markets. Read more here-http://tinyurl.com/6rpdmrs
-Big banks to avoid sovereign debt: S&P. Europe’s biggest banks are unlikely to use the funding made available through the European Central Bank’s three-year lending facility to buy sovereign bonds because of concern about their volatility, a Standard & Poor’s bank analyst said. Read more here-http://tinyurl.com/72qaxfo
-George Soros Has Hard Words for European Union. Soros said that Europe is mired in a “spiral of decline” that reinforces itself, adding that, as things stand, “Weaker members of the euro zone are being left as Third World countries that borrowed in foreign currencies.”
“I’m not sure if authorities (in the EU) are deliberately prolonging the crisis, or if this is being driven by divergent views,” he said. He pointed to Hungary, currently bogged down in its own financial crisis, as a “precursor of what is stake” if the EU continues its current policies. Read more here-http://tinyurl.com/7q9g6so
-British National Debt Just Blew Past The £1 Trillion Mark. Read more here-http://tinyurl.com/7llgghz
-Britain has sunk deeper into debt. Three years after bubble burst, the UK has barely begun to tackle the crushing burden left by Gordon Brown. Read more here-http://tinyurl.com/7tx2t89
-U.K. Teeters on Brink of Recession as King Signals More Stimulus. The U.K. economy shrank more than economists forecast in the fourth quarter as manufacturers cut output and services stagnated, leaving Britain on the brink of another recession. Read more here-http://tinyurl.com/74pbfg6
-CHART OF THE WEEK: New World Oil Demand Blasts Past Old World. Oil demand is markedly different in the old world, which refers to the U.S., western Europe and Japan; and the new world, which is identified as the rest of the world, according to Ed Yardeni. Crude oil use in the old world has slipped back to the recession lows of 2009, while demand in the new world surged to 51.5 million barrels per day last year, according to Yardeni.
New world oil demand grew 2.8% in 2011, compared with a 1.2% decline in the old world. In fact, new world oil demand now exceeds old world demand by 36%. Unsurprisingly, oil demand was the lowest in Western Europe, falling to the lowest level since the end of 1994. Read more here-http://tinyurl.com/6psps5v
-Canada Doesn’t Have Enough Workers To Tap The Oil Sands, And The Shortage Is Getting Worse. Read more here-http://tinyurl.com/7unmfe5
-Harper Builds Oil Links With China After Obama ‘Slap’ on Keystone Pipeline. Read more here-http://tinyurl.com/7bjq46b
-EU Agrees to Ban Iran Oil Imports to Target Nuclear Program. Read more here-http://tinyurl.com/7u4uw85
-North Dakota Oil Boom Brings Pain With Growth as Housing, Food Costs Soar. The gravel road that borders Dave Hynek’s North Dakota farm is designed to carry 10 tractor- trailer trucks a day. In a recent 24-hour period, about 800 passed by. Read more here-http://tinyurl.com/7xl8twj
-Stock Trading Lowest in U.S. Since 2008 After Fund Withdrawals, Job Cuts. Trading in U.S. stocks fell to the lowest level since at least 2008 amid mutual fund withdrawals and Wall Street job cuts. Read more here-http://tinyurl.com/75hum5u
-Notorious Market Timer Joe Granville Predicts A 50% Plunge. Joseph Granville, whose “sell everything” call in 1981 sparked a decline in U.S. stocks, said the Dow Jones Industrial Average will drop toward 8,000 this year because of waning momentum and volume.
“Volume precedes prices,” Granville, 88, a technical analyst who has been publishing the Granville Market Letter from Kansas City, Missouri for about 50 years, said in an interview. “You are seeing much lower volume. That tells you that prices are going to go much lower, much lower than most people think possible and very few people have projected.” Read more here-http://tinyurl.com/7sgpkmu
-New Home Sales in U.S. Fell in December. Sales of new U.S. homes unexpectedly declined in December for the first time in four months, capping the slowest year on record for builders. Read more here-http://tinyurl.com/82q844x
-Sales of Previously Owned U.S. Houses Finish 2011 on a High Note. Read more here-http://tinyurl.com/7dr4jzs
-Hamptons Home Prices Fall 13% as Buyers Balk. Home prices in New York’s Hamptons, the beachside retreat of financiers and celebrities, declined 13 percent in the fourth quarter from a year earlier as buyers opted for less-expensive properties. Read more here-http://tinyurl.com/6qb2pqk
-Old mortgages rise from the dead, haunt homeowners. Read more here-http://tinyurl.com/6py4bu7
-Foreclosures made up 20% of home sales in 3Q. Read more here-http://tinyurl.com/85jl6l4
-Foreclosures: America’s hardest hit neighborhoods. The housing collapse has dramatically changed the nation’s foreclosure landscape. Read more here-http://tinyurl.com/6noe3c2
-Foreclosure nightmares: 3 families fight for their homes. With more than 200,000 households receiving foreclosure notices each month, there are bound to be a few mistakes. But for some unlucky homeowners, these blunders carry some serious consequences. Read more here-http://tinyurl.com/7sveq64
-Vancouver Displaces Sydney as Second-Costliest Housing Market in Survey. Vancouver displaced Sydney as the least-affordable housing market after Hong Kong among large English-speaking cities, as home prices rose faster than incomes, a study of 325 metropolitan areas worldwide showed. Read more here-http://tinyurl.com/877yv7n
–Ahmadinejad says Iran ready for nuclear talks. Iran is ready to revive talks with the world powers, President Mahmoud Ahmadinejad said, as toughening sanctions aim at forcing Tehran to sharply scale back its nuclear program. Even so, he insisted that the pressures will not force Iran to give up its demands, including to continue enriching uranium, that led to the collapse of dialogue last year. Read more here-http://tinyurl.com/77l2d4u
-Even without Hormuz blockade, Iran has options. Read more here-http://tinyurl.com/7pcm9tc
-Iran Said to Seek Yen Oil Payments From India Amid Sanctions. Read more here-http://tinyurl.com/6v5ny99
-Iran devalues in bid to stop rial slide. Iran announced an 8 percent devaluation of the rial on Thursday and said it would enforce a single exchange rate, aiming to stamp out a black market where dollars have soared due to fears over new sanctions imposed by the West. Read more here-http://tinyurl.com/87q9jon
-Iran’s Ahmadinejad ups rates to stem money crisis. Iran increased bank interest rates up to 21 percent and indicated it would further restrict sales of foreign currency, hoping to halt a spiralling currency crisis after new Western sanctions accelerated a dash for dollars by Iranians worried about their economic future. Read more here-http://tinyurl.com/7a4lmz2