Radio Show Newsletter
CHARTS OF THE WEEK-QUOTES-QUICK HITS
-Here’s The Presentation Where Jeff Gundlach Dares To Compare The US To The Roman Empire. Read more here-http://tinyurl.com/7g2onxk
-CHART OF THE WEEK: Cost of Living Survey. Read more here-http://tinyurl.com/79urz7q
-“As we know, they (central planners) are going to do everything they can to drive the price of gold. It’s not in their best interest for people to bail out of their worthless paper or digital money and buy something like silver and gold that’s a real tangible asset or even diamonds. That’s why you are seeing the price going up on that (diamonds) as well.” Gerald Celente
-Robert Fitzwilson: The Entire Planet’s Financial System is at Stake. “I’ve been doing this for almost 40 years and this is an incredibly dynamic situation, but investors need to have a long-term view. Unfortunately, because of the mainstream media, people have adopted a trader’s mentality and that’s ultimately destructive.
I would describe our approach as being one of a turtle because we believe there is going to be this massive transfer of wealth, from paper to real assets. Investors need to have a large percentage of their assets in things that will survive and also prosper during this wealth transfer period. There is a wealth transfer going on, all the time, when you print money.
“If someone can tell me when the printing is going to stop, then I can tell you when to sell gold. But there is no evidence of that. In fact the printing is accelerating. What historically triggers a problem is people come to the conclusion the money is no longer trustworthy and at that point, you get the panic. Everybody tries to get out of paper and into hard assets.
So that’s what’s going on and the vast majority of people don’t realize that their money is being diluted every time the printing presses are called into action. Gradually the currency is going down, but history tells us at some point in the future it accelerates and then gold goes up exponentially. But by the time everybody figures it out it’s too late. Read more here-http://tinyurl.com/6os87tm
-Art Cashin: Forget Greece, Traders Are Worried About Something That Could Send Us Back To The Middle Ages. A Greek default has been on everyone’s minds lately. But the traders Cashin has talked to think that it’s just the tip of the iceberg. The bigger fear is what happens in the credit default swap (CDS) markets. No one knows how big it is, who the counterparties are, and, worst of all, whether the CDS contracts will actually trigger in what many would consider a default. Read more here-http://tinyurl.com/76yhdrl
-A credit default swap (CDS) is an agreement that the seller of the CDS will compensate the buyer in the event of a loan default. The buyer of the CDS makes a series of payments (the CDS “fee” or “spread”) to the seller and, in exchange, receives a payoff if the loan defaults. Read more here-http://tinyurl.com/2mwqg2
–New CBO Report Decimates ‘Obamanomics’: Real Unemployment Hits 15%. “The rate of unemployment in the United States has exceeded 8 percent since February 2009, making the past three years the longest stretch of high unemployment in this country since the Great Depression. Moreover, the Congressional Budget Office (CBO) projects that the unemployment rate will remain above 8 percent until 2014.
The official unemployment rate excludes those individuals who would like to work but have not searched for a job in the past four weeks as well as those who are working part-time but would prefer full-time work; if those people were counted among the unemployed, the unemployment rate in January 2012 would have been about 15 percent.
Compounding the problem of high unemployment, the share of unemployed people looking for work for more than six months referred to as the long-term unemployed topped 40 percent in December 2009 for the first time since 1948, when such data began to be collected; it has remained above that level ever since.” Read more here-http://tinyurl.com/7s5crfu
-U.S. to hit debt limit before election day. The United States Department of Treasury will reach the statutory limit it is allowed to borrow money before election day, according to a new study by Sen. Rob Portman, R-Ohio., former director of the U.S. Office of Management and Budget. Read more here-http://tinyurl.com/6snkcjg
-The Commitment-Phobic U.S. Consumer. A growing fear is stalking the post-recession U.S. fear of commitment. Americans are balking at all sorts of long-term entanglements, whether financial, romantic or even parental. Read more here-http://tinyurl.com/6p3l2ob
–MF Global Brokerage Has $1.6 Billion Shortfall to Pay Claims, Trustee Says. The trustee liquidating MF Global Inc. brokerage said the firm has a shortfall of at least $1.6 billion to pay commodity customers’ claims. Read more here-http://tinyurl.com/84yzuuy
–Apple Vaults Google in Image as Buffett’s Berkshire Slips. Apple Inc., burnished by the iPhone’s success and memorials to Steve Jobs, displaced Google Inc. as top company in Harris Interactives poll of corporate images. Berkshire Hathaway Inc. and Johnson & Johnson dropped. Read more here-http://tinyurl.com/6t3msem
-These Guys Have Made More Than $100k For Every Hour They’ve Been Alive. Read more here-http://tinyurl.com/7mcnfmn
-11 Inspirational Quotes From Legendary Billionaires. Read more here-http://tinyurl.com/7r7dhs9
-Rothko Boosts $611 Million Auctions as Price Rises Lure Sellers. Mark Rothko, Gerhard Richter and Francis Bacon paintings will boost auctions this month that may raise more than $611 million as sellers are spurred by rising prices for museum-quality works. Read more here-http://tinyurl.com/742t288
–Peak Water: The Rise and Fall of Cheap, Clean H2O. The Earth’s surface is mostly water, yet across increasingly large swaths of the planet, H2O reservoirs are drying up. This isn’t a metaphor, and it’s not hyperbole. It’s a fact that’s changing the destinies of companies and nations. Read more here-http://tinyurl.com/7kolyr8
-Scarred Hearts Can Be Mended With Stem Cell Therapy, Study Shows. Stem cells grown from patients’ own cardiac tissue can heal damage once thought to be permanent after a heart attack, according to a study that suggests the experimental approach may one day help stave off heart failure. Read more here-http://tinyurl.com/88cyglq
-‘Dragon Tattoo’ Named Year’s Riskiest Movie on Motorcycle, Torture Scenes. “The Girl With the Dragon Tattoo,” the film featuring motorcycle, fight and torture scenes, was named 2011’s riskiest movie by Fireman’s Fund Insurance Co. Read more here-http://tinyurl.com/74xu4wf
–Chinese Hackers Had Years of Access to Nortel Computers, Journal Reports. Nortel Networks Corp. lost data for years to hackers based in China who penetrated the company’s network by stealing executives’ passwords, the Wall Street Journal reported, citing a former employee. Read more here-http://tinyurl.com/7jrw8zd
-Anonymous knocks CIA website offline. The website of the Central Intelligence Agency was inaccessible on Friday after the hacker group Anonymous claimed to have knocked it offline. Read more here-http://tinyurl.com/77f77hg
-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 1.03 carat oval cut fancy vivid yellow internally flawless Diamond. Since records were first kept at the beginning of the 1970s, prices for the highest grades of colored diamonds have increased in value by an average of between 10%-15% per year, with rarer colors and higher grades enjoying the greatest price appreciation. This appreciation has statistically been non-correlated to the stock and bond markets, an important consideration for investors seeking a diversified portfolio. Harold Seigel-Watch video of the Featured Diamond here-http://tinyurl.com/6g37q2r
-Sotheby’s New York Jewels Sale Tops $10M. A 5-carat, VS1, heart-shaped fancy orangy-pink diamond pendant-necklace achieved $632,500, or $126,500 per carat. With the record result for a February sale in New York, Sotheby’s stated that it is looking forward to the auction of Magnificent Jewels in April. Read more here-http://tinyurl.com/82aot6d
-Colored Diamond Auction Results, Sotheby’s Important Jewels Sale, New York Feb 9 2012. See more here-http://tinyurl.com/7odm66e
-According to Martin Rapaport’s “Diamond Price Statistics Annual Report 2011,” every $1,000 spent on a 5-carat white diamond 10 years ago would have returned $1,645 in 2011. A decade-long diamond investment outpaced returns in the yen, euro, and Nasdaq or Dow Jones indices, according to the report. CNBC
-“There’s a value to diamonds you don’t find in other investments. You can’t melt a diamond, they don’t burn, aren’t made of paper and are very easy to transport.” Moneca Kaufmann-President of Kaufmann de Suisse Jewelers
-“You can put a million dollars [worth of diamonds] in your pocket and get on a plane and no one will notice. There isn’t too much else you can do that with. You can’t really do that with money, you can’t do that with bonds, you can’t do that with gold, but you can do that with diamonds.” John Bianco-Director of Circa in Palm Beach
-Tobina Kahn, Vice President of House of Kahn Estate Jewelers in Chicago, said many clients are beginning to see the purchase of large diamonds as a way to preserve their wealth. She tells the story of a client who lost a fortune in the markets and told her husband not to buy stocks or bonds. She wanted a diamond instead. “And a big one!” “So people are seeing specific events that are going on in the United States and around the world and saying, ‘Gee, I want something that I can see, touch and feel and can store as a value of wealth.’ ” Palmbeachdailynews.com
-Elizabeth Taylor auctions raise $183 million. Paintings, jewelry and fashions belonging to the late Elizabeth Taylor have sold for more than $183 million, with all of the more than 1,800 items on offer snapped up, Christie’s auction house said. Christie’s said 1,817 lots were sold at a series of auctions in New York and London, some at 50 times their pre-sale estimates.
New York sales of jewelry, fashion and memorabilia in December raised more than $156 million, with a buyer paying $8.8 million for a 33.19-carat diamond ring given to Taylor by actor Richard Burton, whom she married twice. Read more here-http://tinyurl.com/7l9g6dk
-Next Auction is Monday Feb 27 8PM Eastern 6PM Mountain. See more here-http://www.hsfineauctions.com/
-Limited Edition Oprah Pendant sells for $35K. On January 16, 2012, HSFineAuctions.com sold one of the Limited Edition O pendants, a much coveted piece of jewelry. Only 100 of these pendants were produced worldwide, with the pink diamonds coming from the Rio Tinto’s Argyle mine in Australia. This exclusive piece of jewelry received 29 bids in under 6 minutes and sold for $35,000.00 USD, reflecting the increasing appreciation of the value of rare colored diamonds.
HSFineAuctions.com is the world’s premiere rare colored diamond and fine collectibles live auction website. It brings together a diverse collection of rare colored diamonds and fine collectibles from across the globe for investors and collectors alike. Founder and owner, Harold Seigel is an expert on rare colored diamonds, precious metals and fine collectibles investments. He has been featured on CNN, CNBC, Rush Limbaugh, and The Michael Campbell Show, to name just a few. He is also the owner of RareColoredDiamonds.com and hosts The World Financial Report on HESRadio.com to educate investors on the rapidly growing rare colored diamond market.
HSFineAuctions.com was developed by Relentless Technology based in Vancouver, BC, Canada. The site was designed to host live auctions, complete with streaming live audio and real-time bidding.
The first-ever live auction opened on Monday, November 21st at 7:00 EST and was an overwhelming success. All 10 lots sold in just under an hour, fetching fantastic prices and generating lots of excitement. The bidding was fast and furious as investors raced to take advantage of the first ever rare colored diamond and fine collectibles live auction. To date, 90% of all products listed in the auctions have sold. Collectibles such as silver coin sets have been fetching three times intrinsic market value.
The auctions are open to everyone. To find out more about H. Seigel Fine Auctions, or to sign up for the next live auction, visit HSFineAuctions.com.
-“2012 started off with a bang. Gold and silver had their best start to a new year since 1983. This ongoing debt crisis practically guarantees a higher gold price for the next few years.” Aden Sisters
-“It’s extremely important to have physical gold in this environment. It’s not good enough to own gold in an ETF. You need to have something you can put your hands on. You need to have gold and you need to have silver, something that will protect your wealth if the whole system goes down. The bottom line is this may not happen. But even if things get very stressed in the system, it will be incredibly difficult for people to get their hands on physical gold or silver.” Keith Barron
-“Gold appears to be in the early stages of a powerful cycle that could target $2100, $2500, and finally $2800 by March of 2013. On this historic 2006-2007 consolidation chart I have highlighted key characteristics of that time frame to show you how it compares to the current consolidation.” Morris Hubbartt
-Richard Russell: A Bitter Pill to Swallow, Austerity or Inflation. Inflation is the central banks’ method of avoiding the pain of austerity. Inflation is the current economic narcotic that is used by modern nations. It’s the old ‘beggar thy neighbor’ system, and it will ultimately result either in all out hyperinflation and a collapse of the fiat currency system or a corrective deflationary crash. Either way, the last currency standing will be gold.” Read more here-http://tinyurl.com/7osbces
-60 Minutes: Precious metal, India’s love affair with gold. India’s love for gold is almost a religion. Beyond being a symbol of wealth and status, gold is part of worship and culture a tradition that goes back thousands of years. From birth to death, for men and women, among rich and poor acquiring gold is a goal for the people of India. All of which has made India the world’s largest consumer of gold and thus a powerhouse in industry. Read more here-http://tinyurl.com/765blhp Watch more here-http://tinyurl.com/799buxq
–China to Surpass India as Biggest Gold Market This Year, World Gold Council Predicts. China, the world’s largest consumer of energy and base metals, is set to displace India this year as the biggest gold user on an annual basis as surging incomes drive increased demand for jewelry and investments.
Demand in China jumped 20 percent to 769.8 metric tons in 2011, while consumption in India fell 7 percent to 933.4 tons, according to a report from the producer-funded World Gold Council. “It is likely that China will emerge as the largest gold market in the world for the first time in 2012,” said Marcus Grubb, managing director of investment. Read more here-http://tinyurl.com/7p8mp8t Full report here-http://tinyurl.com/7h5wt6s
-Peter Grandich: Mother of all gold bull markets remains intact. I have called this the mother of all gold bull markets. I don’t think we’ll see a bull market like this again in our lifetime. However, it’s also been the most stealth bull market. North Americans, and particularly Americans, have shown little or no participation, yet the price has increased five to six fold.
All the fundamentals remain in place: central banks have gone from big sellers to net buyers and major producers don’t forward sell much anymore. The news that the Fed plans to continue flooding the system with cheap paper is just another example of why gold’s path of least resistance is to the upside. I believe an all-time high, not just a nominal high, but adjusted for inflation, could reach $2,350-2,500/ounce (oz).
The mother of all gold bull markets remains intact. The bears have once again been bloodied and they’ll go into hiding until we go through $2,000/oz and then they’ll come out again. Then the media will flock to them to tell us for the 19th time why gold has topped out. Read more here-http://tinyurl.com/742ytls
-John Embry: Is Greece’s Situation Bad for Gold? “Gold is in a bit of a stranglehold here and has been since almost the beginning of February. It sort of coincides with this whole Greek saga where they seem to have a solution every morning and by the end of the day somebody points out another flaw. I think this is extremely bullish for gold.”
“People say keep an eye on Greece because if they don’t come up with a solution it’s bad for gold. I think that’s ridiculous. The fact is if the price weren’t so manipulated it would be continuing to roll ahead because there are no solutions to these various problems that are plaguing most areas of the world today. Read more here-http://tinyurl.com/78sj4l5
-John Embry: Debt saturation ensures much higher gold and silver. I believe that investors can’t own enough gold and silver. Don’t be concerned about daily fluctuations in price. Focus only on how many ounces of gold and silver you own and, above all, make sure it is in physical form or in a well-documented fully allocated paper vehicle. Avoid at all costs paper gold and silver, which isn’t what it purports to be and is, in effect backed by gold and silver that has been hypothecated and rehypothecated so many times that there is almost no backing whatsoever. Read more here-http://www.gata.org/node/10996
-Jim Sinclair: CB’s Trying to Keep Gold from Rising Violently. I am not a member of the school that believes central banks are trying to keep the price of gold from rising. Central banks are trying to keep the price from rising violently. Volatility is the key. Price is secondary to the volatility of the gold market as it challenges currency markets and creates an imperative to action.
The attempts and activities of the central banks, in gold, are not by any matter of means to control price, as they are to control volatility. (This is being done so they don’t have to) unmask the mechanism of what is bringing to you a new monetary system. The mechanism is called liquidity. Gold is liquidity. Read more here-http://tinyurl.com/7werqnr
-James Turk: Gold Panic Buying & Pulling Banks Back from the Brink. We’ve been in a consolidation with a trading range extending from about $1,710 to $1,750. You’ve really got to get excited about what is happening here. Think about it a minute, gold climbed from $1,525 to $1,755 or $230 and instead of retracing, it’s just moving sideways in a very powerful consolidation. Gold is only $30 or so from breaking out of this trading range, which I expect to happen within the next week or two. Read more here-http://tinyurl.com/7ykeg2x
-Gerald Celente: Gold, Silver, War, Systemic Collapse & Social Unrest. Celente had this to say about an increased number of investors that have been crowding into gold and other hard assets: “The smart people are (buying gold) and more and more people are waking up to it. So the people that are going to survive and thrive are going to be the ones that are prepared, the ones that are going to see history before it happens and get ready for it and there are very few.” Read more here-http://tinyurl.com/7h2s6lr
-David Cottle: Gold has humbled smart men before. Gold may well annoy the likes of Mr. Buffett, and swashbuckling investors everywhere, who will probably continue to reap better rewards elsewhere. Good luck to them. But in a world short of trustworthy governments, gold will remain a more important and permanent part of portfolios than it was in the pre-crisis days of innocence. Read more here-http://www.gata.org/node/10989
-Why Warren Buffett still doesn’t like investing in gold. The Oracle of Omaha is certain that 100 years from now, when people are fearful, they will still rush into gold but, he still prefers stocks and productive assets. Read more here-http://tinyurl.com/7y7wbv3
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
-“Let me confess one of my greatest fears about a potential future bubble in silver. If a silver bubble does develop, by definition large numbers of uninformed investors will join in the fray, eager to capture sure profits. The concerns for risk will be cast aside, as they are in any bubble. Undoubtedly, many of my former bullish arguments for buying silver will be trotted out as current reasons for buying even as price and risk grow.
I doubt very much that I will be pounding the table to buy in a silver bubble and instead will probably be way too early in suggesting its sale. Yet new uniformed buyers will mistakenly view my past pronouncements as reasons to buy after a bubble is formed. The thought that I will inadvertently be responsible for damage to the latecomers is troubling.”
“Of course, the risk to latecomers only grows deep into the bubble, should it form. The risk of a silver bubble bursting now is remote, because it hasn’t formed yet. Yes, there is always the risk of short term sell-offs for reasons related to manipulative activities on the COMEX, but those sell-offs should be viewed as buying opportunities as has been the case for the life of the silver bull market to date.
In terms of a bubble-like collapse in silver prices, that risk will not exist until a bubble first forms.” “In the meantime, since a bubble has not yet formed in silver, what are the possible effects on the price should a silver bubble form? Certainly, I have not been particularly surprised by the 8 to 10 fold increase in price over the past 5 to 10 years. If anything, the price performance to date in silver, given all the facts, has been somewhat muted.
Leaving out a possible bubble forming, it would not surprise me to see eventual long term silver prices at $100 or even $200. That’s without a bubble. If a silver bubble does form, it is hard for me not to imagine some multiple of those prices.” Ted Butler via Ed Steer Casey Research-Read more here-http://tinyurl.com/787yje4
-Ted Butler: Short position in SLV has fallen substantially. Read more here-http://www.gata.org/node/10998
-“My low-side minimum forecast for silver in the first half of 2012 is $38.85/oz. We have a pretty good chance of getting up to $41.44/oz. If things really begin to get quite volatile this year, I think you could break $50/oz. Our next higher number for silver is $59.85/oz. Some of our smart analyst friends who are a little bolder, have numbers in the $60s and one is even above $70/oz.” Roger Wiegand
-Citi Sees Silver As Underpriced, Due To Lead. In a note to clients, Citigroup analysts asserted that silver looks underpriced relative to gold and has room to outperform over the short-term. The firm’s analysts pointed out that the gold-silver ratio measuring the number of silver ounces that can be bought for the price of one ounce of gold is currently trading around 51.
That’s well above levels seen in the gold and silver bull market of 1970-1980, when the ratio fell below 16, the bank noted. “We would not be surprised to see gold underperform silver here,” Citi added. “The 200-day (gold/silver ratio) moving average is at 47.64, which we suspect will be tested.”
In terms of silver’s technical outlook, a key resistance level to watch is the $35.66 to $36.55 an ounce range, said Citi. A weekly close above that level, the research piece predicted, would open the way for a medium-term silver rally toward $45.30 an ounce. That would represent about a 35% jump from current levels. Read more here-http://tinyurl.com/79m22vj
-James Turk: Silver Update. “I keep going back to that weekly silver chart that we’ve been talking about now for a couple of months. With each passing day, the base in silver continues to build. We should view this base as a launch pad from which silver will rocket higher. It’s taking a little patience, but once that $35 level is broken, it’s blastoff for silver.” Instead of thinking about falling precious metals prices, investors should instead be prepared for panic buying when gold breaks above $1,750 and silver takes out $35.” Read more here-http://tinyurl.com/7ykeg2x
-SocGen: QE3 Is Coming Soon, But First The S&P Is Going To Tank. SocGen has put out a big special report titled: QE3 delayed, but still likely. Their high level overview of where things stand right now looks like this: QE3 has been delayed by the recent bout of good news from the US economy: SG is now in line with the consensus, expecting the launch in Q2 (24-25 April FOMC meeting). Read more here-http://tinyurl.com/7s2kn2a
-Fed’s Williams Says U.S. Monetary Policy Throttle Should Be Kept Wide Open. Federal Reserve Bank of San Francisco President John Williams said the U.S. central bank should keep trying to boost growth because it’s missing its goals for employment and price stability, while stopping short of calling for more asset purchases for now. Read more here-http://tinyurl.com/8892xp8
–Jim Grant: Fed Should Heed Lessons of 1920 Recession Response. Responding to a severe economic downturn from 1920 to 1921, the Federal Reserve increased interest rates and the national budget was balanced, moves that kept the painful recession short, New York-based Grant said. In contrast, he said U.S. policy makers are prolonging the pain of the so-called Great Recession by intervening in markets and running unprecedented federal budget deficits.
“The Fed is not content to let interest rates find their levels, they must repress them, and they are not content to let housing prices find their levels, they seek to intervene to prop them up,” Grant said. “The results of all this intervention is not to cure what ails us, but prolongs the symptoms of what distresses us.” Read more here-http://tinyurl.com/7lxfsvm
–Fed’s Fisher: Congress, Not Fed, Should Spur Jobs. Federal Reserve Bank of Dallas President Richard Fisher said more Fed easing may backfire and that Congress and the Obama administration should streamline tax and regulatory policies to spur long-term job growth.
“No amount of monetary accommodation will change the pathology” businesses face, Fisher said in a speech. “Excessive monetary accommodation might only add a further dosage of angst, fueling fears of future inflation.” Read more here-http://tinyurl.com/7k4s7o2
-Moody’s Cuts European Sovereigns. Moody’s Investors Service cut the debt ratings of six European countries including Italy, Spain and Portugal and revised its outlook on the U.K.’s and France’s top Aaa ratings to “negative,” citing Europe’s debt crisis. Read more here-http://tinyurl.com/7smeqsv
-Germany Targets Approval for Greek Rescue Feb. 20. Germany wants euro-area finance ministers to consider the 130 billion-euro ($170 billion) rescue for Greece at their meeting Feb. 20 along with a bond swap to cut the nation’s debt load, coalition lawmakers were told by German government officials in a briefing. Read more here-http://tinyurl.com/75shj88
-Nigel Farage: Greece Descending into Total Chaos & Violence. Read more here-http://tinyurl.com/7yktu5w
–George Soros: Greek Bailout Won’t Rid Europe of Danger. Billionaire investor George Soros predicted weak growth and lingering political tension that could shatter Europe’s economic union even if Greece agrees to austerity measures. “Right now the European Union and particularly the heavily indebted countries face a lost decade,” Soros said.
“It might actually be longer than a decade because Japan that had a similar situation with the real estate boom and the banking crisis has had now 25 years of no growth,” Soros said. “That will create tensions within the European Union, which could destroy the European Union,” he said. “And that’s a real danger.” Read more here-http://tinyurl.com/7nqxx4x
-Soros: Merkel taking Europe in wrong direction. Billionaire George Soros slammed German Chancellor Angela Merkel in an interview, warning that her policies could lead to a repeat of the Great Depression. Soros warned against addressing the crisis with spending cuts, urging the injection of funds instead. “Otherwise we will repeat the mistakes that plunged America into the Great Depression in 1929. That’s what Angela Merkel doesn’t understand,” he said. Read more here-http://tinyurl.com/7r49azh
–Paulson Says Euro Will Probably Unravel. Paulson & Co., the $23 billion hedge fund run by John Paulson, said the euro is structurally flawed and will eventually fall apart, according to a letter the firm sent to its investors. The collapse could be triggered by a Greek default, which would then throw the world in recession and financial disorder. “We believe a Greek payment default could be a greater shock to the system that Lehman’s failure, immediately causing global economies to contract and markets to decline,” Paulson said. Read more here-http://tinyurl.com/6tggkqb
-Hank Paulson: Europe Crisis Will Take Years to Sort Out. Although there are similarities with what the United States went through at the onset of the financial crisis, the issues in Europe are more complex and will take years to resolve, Henry Paulson, former Treasury Secretary and founder of the Paulson Institute told CNBC. Read more here-http://tinyurl.com/6wtbj4n
-Greece Needs Years to Mend From Crisis, JPMorgan’s Frenkel Says. Greece, facing doubts from European officials about its commitment to reduce deficits, will take years to emerge from its debt crisis, JPMorgan Chase International Chairman Jacob Frenkel said.
“What we’re talking now about is not a magic wand that in one day will change the face of the country,” Frenkel, a former governor of the Bank of Israel, said. “Those expectations will be frustrated unless it is communicated very clearly that problems that arose over years need to be corrected over years.” Read more here-http://tinyurl.com/876sfry
-Wen Says China Ready to Be More ‘Deeply‘ Involved in Solution for Europe. China said it will “get more involved” in supporting Europe and sustain its holdings of euro assets, spurring gains in the currency and Asian stocks on optimism the debt crisis will be overcome.
“China will always adhere to the principle of holding assets of EU sovereign debt,” People’s Bank of China Governor Zhou Xiaochuan said in Beijing. “We would participate in resolving the euro debt crisis,” he said, echoing comments by Premier Wen Jiabao. Read more here-http://tinyurl.com/75tzp8w
-Italian Government Debt Increases to $2.5 Trillion With Euro Bailout Costs. Italian government debt rose 4 percent in 2011 to 1.897 trillion euros ($2.5 trillion) on funding for European bailouts and a weaker euro that increased the cost of servicing foreign-denominated debt, the Bank of Italy said in a report. Read more here-http://tinyurl.com/7tqss7v
-Spain’s ghost towns: Built during the boom years but now lying empty as jobless total tops Five Million. Spain has highest jobless rate in Europe with 22.9% unemployed. Read more here-http://tinyurl.com/7wkgalz
–Obama Sends $3.8 Trillion Election-Year Budget to Congress. President Barack Obama sent Congress a $3.8 trillion budget plan with stimulus spending and tax increases for the wealthiest Americans, spelling out election-year priorities that drew immediate Republican opposition. Read more here-http://tinyurl.com/7rfo8cv
–Obama’s 2013 Budget Projects $901 Billion Deficit in Proposal to Congress. President Barack Obama will revive proposals for $1.5 trillion in tax increases as well as spending to boost jobs as part of a 2013 budget request that projects the deficit shrinking next year to $901 billion. Read more here-http://tinyurl.com/79ucud7
-Obama’s deficit spending $17k per person, $70k per family. Here are the actual or projected deficit tallies for the four years in which Obama has submitted budgets are as follows: $1.293 trillion in 2010, $1.300 trillion in 2011, $1.327 trillion in 2012, and $901 billion in 2013. Read more here-http://tinyurl.com/78brl7b
-U.S. Budget Gap for January was 27.4 Billion. Read more here-http://tinyurl.com/8a2kzek
-Boehner’s ‘Take to the Bank‘ Resolve to Fizzle. U.S. House Speaker John Boehner said 78 days ago that lawmakers could “take to the bank the fact that” a payroll tax cut extension “will be paid for.” That resolve fizzled yesterday when he agreed to support a deal that would add about $100 billion to the budget deficit. Read more here-http://tinyurl.com/8yg5qs8
-Calif. Jan. Tax Revenue $528M Below Estimate. California collected $528 million less in taxes in January than Governor Jerry Brown estimated in his latest budget, Controller John Chiang said. The majority of the shortfall was in income taxes, down $525 million, or 6.3 percent less than projected in the spending plan Brown released Jan. 5, Chiang said. Corporate taxes were down $127.9 million, while sales taxes were up $42.8 million. Read more here-http://tinyurl.com/7xouwjc
-Calpers Actuary: Consider Lower Assumed Return. California Public Employees’ Retirement System, the largest U.S. public pension, should consider changing its assumed rate of investment return, its actuary said. Trimming the forecast may add to taxpayer costs.
The rate, now 7.75 percent, is used to calculate how much money the $234 billion fund expects to have and how much it needs to cover benefits promised to workers, as well as the size of annual contributions by state and local government.
Rising public-employee retiree costs are straining the budgets of states such as California and cities across the U.S. still coping with tax revenue reduced by the longest recession since the Great Depression. Public funds have come under fire for using assumptions that hide the true size of shortfalls. Read more here-http://tinyurl.com/6s88esx
–Student Loans Near $1 Trillion Hurt Young Buyers. Roshell Schenck has a PhD in pharmacy and earns $125,000 a year, yet can’t qualify for a mortgage for a house for herself and her 9-year-old daughter. The 2008 graduate of Lake Erie College of Osteopathic Medicine, in Erie, Pennsylvania, has more than $110,000 in student debt. Read more here-http://tinyurl.com/7bta2dk
–Trade Deficit in U.S. Rose in December to Six-Month High on Import Growth. The trade deficit in the U.S. widened in December to a six-month high as a strengthening economy prompted bigger gains in imports than exports. Read more here-http://tinyurl.com/732mfcf
-China Reduces Holdings of U.S. Treasuries to Lowest Level Since June 2010. China, the largest foreign lender to the U.S., reduced its holdings of Treasuries in December to the least since June 2010 amid efforts to assist Europe in addressing its debt crisis.
The world’s second-largest economy decreased its U.S. debt securities by $31.9 billion from November, or 2.8 percent, to $1.11 trillion, according to Treasury Department data released. Its position in longer-term notes and bonds also fell $32.5 billion, or 2.8 percent, to $1.1 trillion, the least since June 2010. Japan, the second biggest buyer, increased its holding by $3.5 billion to $1.04 trillion. Read more here-http://tinyurl.com/84w7abk
-Risks to Global Oil Supply Rival Late 1970s. The potential threats to the global oil supply especially Iran’s vow to close the Strait of Hormuz have not been this great since the Iranian Revolution and Iran-Iraq War three decades ago, according to a report by Deutsche Bank. Read more here-http://tinyurl.com/7tbjnle
-Get Ready for $5 Gas This Year: Ex-Shell CEO. John Hofmeister former CEO of Shell Oil’s U.S. operations, warned that there is a “better than 50 percent chance” the price of gas will spike on continued heavy demand in emerging markets and weak public policy at home. He also sees West Texas crude prices touching “the midteens to $120 a barrel sometime this year.” Read more here-http://tinyurl.com/7678eb7
-Liepert Says Alberta Needs Many Pipeline Outlets to Avoid Landlocked Oil. Alberta Finance Minister Ron Liepert said the province needs multiple pipelines to ensure its crude doesn’t become “landlocked” as oil companies prepare to ramp up production. Read more here-http://tinyurl.com/73mfl2m
-Vancouver Could Take Larger Tankers, More Kinder Morgan Oil, Port CEO Says. Vancouver would be able to handle larger tankers that could receive crude oil from an expanded Kinder Morgan Inc. pipeline, allowing Canada to boost energy shipments to Asia, the head of the city’s port authority said. Read more here-http://tinyurl.com/7eek2y2
-Mark Hulbert: The insiders are selling heavily, July was last time insiders were equally as bearish. Corporate insiders are now selling their companies’ stock at a rate not seen since late last July. That’s a scary parallel indeed, since that late-July spike in selling came just days before one of the more painful two-week periods in the stock market in years.
In early August, as you may recall, the U.S. government lost its triple-A credit rating, and the bottom dropped out of the stock market. Between the last week of July and the second week of August, the Dow Jones Industrial Average dropped 2,000 points. To be sure, heavy insider selling doesn’t always lead to this much market weakness, or this immediately.
And there were a lot of other things going on last summer that aren’t present today. Still, on the theory that corporate insiders officers, directors and largest shareholders know more about their firms’ prospects than do the rest of us, it can’t be good news that they are selling at such a heavy pace.
Consider a ratio calculated by Argus Research of the number of shares insiders have sold in the open market to the number that they have bought. Last week, according to the latest issue of Argus’ service, the Vickers Weekly Insider Report, this sell-to-buy ratio stood at 5.77-to-1. And among insiders at companies listed on the New York Stock Exchange, this ratio was even more lopsided at 8.2-to-1.
Making these recent readings even more worrisome, according to Argus Research, is that they came on markedly stepped-up activity among corporate insiders. This increases our confidence that the ratio accurately reflects prevailing sentiment among a broad cross-section of the insiders.
In fact, Vickers is so alarmed by recent insider trends that this week it is selling big chunks of its two model portfolios and putting the proceeds in cash. After the sales, its “Insider Model Portfolio” will be nearly 30% in cash and its “Risk Model Portfolio” will be more than 60% in cash. Read more here-http://tinyurl.com/7xaobl3
-Dow Theory Sending ‘Troubling Sign’ for Stock Rally. Transportation stocks are sending a troubling signal for Dow theorists in particular that the four-month market rally is nearing its end. Read more here-http://tinyurl.com/7hzenkp
-Barron’s: The Dow Is Going To 15,000 And Beyond. Last weekend’s Barron’s cover story is sure to provoke people wondering if, perhaps, the new-found market euphoria isn’t perhaps a bit overdone. Read more here-http://tinyurl.com/6nark9t
-Fink: Investors Should Be 100% in Equities. BlackRock Inc. Laurence D. Fink, who urged investors this week to put all their money in equities, said his call was aimed at getting cash back into the capital markets. “It’s important to get cash off the sidelines and back into the markets so people can get the returns they need and we can get our economies moving again.” Read more here-http://tinyurl.com/7s8bgyl and http://tinyurl.com/7snjayk
-Fed Playing Favorites With Wall Street in Secretive Bond Deals. The Federal Reserve secretly selected a handful of banks to bid for debt securities acquired by taxpayers in the U.S. bailout of American International Group Inc., and the rest of Wall Street is wondering what happened to the transparency the central bank said it was committed to upholding. Read more here-http://tinyurl.com/84fnz44
-Bank failures in Ill, Ind bring 2012 total to 9. Regulators on Friday closed small banks in Illinois and Indiana, increasing to nine the number of U.S. bank failures this year. Read more here-http://tinyurl.com/74vesrd
–World Bank’s Zoellick to step down June 30. World Bank President Robert Zoellick said on Wednesday he plans to step down when his term ends on June 30, raising questions whether the United States will insist on holding on to a job that has always gone to an American. Read more here-http://tinyurl.com/8xeapy2
-Bernanke Says Housing Market Holds Back Fed Efforts to Boost U.S. Economy. Federal Reserve Chairman Ben S. Bernanke said the central bank’s efforts to spur economic growth are being blunted by impediments to mortgage lending, and he called for further steps to heal the housing market. “We have helped lower mortgage rates to the lowest point in many, many decades,” Bernanke told homebuilders in Orlando, Florida. “Yet we are not seeing as much activity as we would like to see.” Read more here-http://tinyurl.com/6t7sekk
-Southern California home prices keep dropping; it’s a time tunnel. In 2008, the median home price in Southern California was $340,000. Home prices are still nowhere close to that level and, in fact, continue to fall. Read more here-http://tinyurl.com/6pjy2kj
-Windows Reveal the True Housing Market. Maybe the clearest way to look at the housing market is through a nice glass window. Susan Marvin, president of Marvin Windows and Doors, a small, privately held family company based in Warroad, Minn., wants to believe that the housing market is improving, but the numbers say otherwise. Read more here-http://tinyurl.com/7xlnnms
-Banks pay delinquent borrowers $35,000 to sell their homes. In an effort to cut their losses, banks are paying some struggling homeowners as much as $35,000 to sell their homes before they end up in foreclosure. The deals are aimed at incentivizing homeowners who owe more on their home than it is worth and who are seriously delinquent on their payments to sell their homes in a short sale. Read more here-http://tinyurl.com/75cvwrq
–Foreclosures on the Rise Again. After a year-long reprieve from rising foreclosures, the numbers are going up again. One in every 624 U.S. households received a foreclosure filing in January, up 3 percent from the previous month, according to a new report from RealtyTrac. Foreclosure activity froze in many states in 2011, due to processing delays after fraud, or so-called “Robo-signing,” were uncovered in the fall of 2010. The thaw is now on. Read more here-http://tinyurl.com/6vzhedp
-The U.S. foreclosure crisis, Beverly Hills-style. The careworn house not far from Santa Monica Boulevard resembles millions of other homes that have been foreclosed on since the calamitous U.S. housing crash four years ago. Read more here-http://tinyurl.com/7wg66cd
–Foreclosure Deal to Spur New Wave of U.S. Home Seizures, Help Heal Market. The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures, inflicting short-term pain on delinquent U.S. borrowers while making a long-term housing recovery more likely. Read more here-http://tinyurl.com/6ojynbo
-Banks Not Off Hook With $25B Mortgage Deal. U.S. lenders including Bank of America Corp. still face years of litigation and billions of dollars in liabilities tied to the housing collapse after agreeing to settle a probe of abusive foreclosure practices. Read more here-http://tinyurl.com/6tweeol
-Greg Hunter: Mortgage Settlement Will Plunge Real Estate Values. It is official. State and federal governments have condoned forgery, perjury and fraud in what’s been called the “robo-signing” foreclosure debacle. Last week, the five biggest banks in America signed on to a $26 billion deal that, basically, lets them off with a slap on the wrist for fraudulently foreclosing on homes in the last few years. Read more here-http://tinyurl.com/7pfkcgt
-Canadian January Existing Home Sales Fall 4.5%, Realtor Group Says. Canadian existing home sales declined last month at the fastest pace since July 2010, the country’s main realtor group said.
Sales dropped 4.5 percent in January from December, the first decline in five months, the Canadian Real Estate Association said today from Ottawa. From a year earlier, the average resale price rose 1.2 percent to C$348,178 and sales increased 4 percent, the slowest pace since May 2011. Read more here-http://tinyurl.com/77hyx5n
-Toronto Bubble Risk Tops New York in Condos. A sliver of land wedged between Toronto’s elevated expressway and an off-ramp that pumps traffic into downtown may become the epicenter for a Canadian housing bubble. In four years, this site that’s now used as a parking lot and police impound near the shores of Lake Ontario will be home to Ten York, a 75-story glass building that would be the country’s third-tallest condo tower.
Toronto has more skyscrapers and high-rises under construction than any North American city almost three times as many as New York stoking debate on whether the condominium market in Canada’s largest city is headed for a U.S.-style correction as prices rise and household borrowing hits a record. Canadian lenders including Toronto-Dominion Bank last week raised mortgage rates to cool off the housing market. Read more here-http://tinyurl.com/7r7uncz
-NYC apartment sells for a record $88 million. The most expensive apartment ever sold in Manhattan went for a cool $88 million this week. The penthouse apartment on Central Park West was formerly owned by Citigroup founder Sanford Weill. It was bought for the original asking price in a deal that closed Feb. 15. Read more here-http://tinyurl.com/7k9eujp
-Mortgage problems? Turn your house into a billboard. Read more here-http://tinyurl.com/7e8ml6e
–Iran is ready for nuclear talks, negotiator tells EU. Iran is offering to resume talks over the country’s nuclear program as soon as possible, according to a letter the nation’s nuclear negotiator sent to the European Union. Read more here-http://tinyurl.com/7tqt65m
–Iran Says It Loaded Locally Made Fuel to Nuke. Iran loaded locally built fuel plates into its nuclear research reactor in Tehran, state-run Press TV reported today, showing images of President Mahmoud Ahmadinejad inside the facility. Only a handful of countries, including France and the U.S., have the technology to build the 20-percent enriched fuel plates needed for the reactor, according to Iranian officials. Ahmadinejad described the step as a “major” nuclear feat. Read more here-http://tinyurl.com/6m2jyjn
-Iran Unlikely to Strike First, U.S. Official Says. The Iranian military is unlikely to intentionally provoke a conflict with the West, the top U.S. military intelligence official said. Lieutenant General Ronald Burgess, director of the Defense Intelligence Agency, said Iran probably has the ability to “temporarily close the Strait of Hormuz with its naval forces,” as some Iranian officials have threatened to do if attacked or in response to sanctions on its oil exports by the U.S. and European Union.
“Iran has also threatened to launch missiles against the United States and our allies in the region in response to an attack,” Burgess said in testimony prepared for a hearing of the Senate Armed Services Committee. “It could also employ its terrorist surrogates worldwide. However, it is unlikely to initiate or intentionally provoke a conflict or launch a preemptive attack.” Read more here-http://tinyurl.com/84j9h7s
-Attacks Raise Specter of Israel-Iran War. U.S. officials and defense analysts are concerned that a covert war of assassinations between Israel and Iran could escalate out of control. “Things are heating up and there is a surge” of assassination attempts, Matthew Levitt, a former U.S. Treasury Department official and now director of the Stein Program on Counterterrorism and Intelligence at the Washington Institute for Near East Policy, said in a interview. Read more here-http://tinyurl.com/8ytwa39
–Israel blames Iran after attacks on embassy staff. Israel accused arch-enemies Iran and its Lebanese ally Hezbollah of being behind twin bomb attacks that targeted Israeli embassy staff in India and Georgia on Monday, wounding four people. Read more here-http://tinyurl.com/78bml8f
–Israel Raises State of Alert After Attacks on Diplomats in India, Georgia. Israeli police elevated alerts across the country following assaults against diplomats in India and Georgia, while Defense Minister Ehud Barak said a botched grenade attack in Thailand bolstered the case for blaming Iran. Read more here-http://tinyurl.com/7eo6qa5
-Intelligence Reports Suggest Iran And Al Qaeda Are Teaming Up To Attack The West. Read more here-http://tinyurl.com/88alswh
-Heightened Security in US Over Iran Threat. With Iran allegedly striking out at Israeli citizens and Jewish targets around the world, Israeli and American security officials in the U.S. are on high alert. Read more here-http://tinyurl.com/6ou9qsy
-Napolitano: Hezbollah Attack on U.S. Possible. U.S. Homeland Security Secretary Janet Napolitano said she is concerned that Iran-backed Hezbollah will attempt a terrorist attack on American soil. Read more here-http://tinyurl.com/75m5m2t
-Charles Krauthammer: Israel ‘will strike’ Iran to ‘prevent a second holocaust.’ “Our own secretary of Defense has said it’s highly likely and he gave a timeframe April, May, June which means the Israelis think that the moment, the zone of immunity where they can no longer attack successfully, is approaching,” Krauthammer said. Read more here-http://tinyurl.com/8922sbw
-Israel Likely to Bomb Iran This Year: Political Analyst. Israel will bomb Iran and it’s increasingly likely to happen this year, according to Alastair Newton, Senior Political Analyst at Nomura. Read more here-http://tinyurl.com/853jyh7
-Israeli attack on Iran would be complex operation. If Israel attacked Iran’s nuclear facilities, the strike would probably take the form of a complex air assault involving scores of planes that would have to penetrate Iranian air defenses and attack up to a couple of dozen targets simultaneously, analysts say. Read more here-http://tinyurl.com/7r39fal
-U.S. carrier crosses Hormuz amid rising Gulf tensions. A U.S. aircraft carrier strike group sailed through the Strait of Hormuz Tuesday more than a month after Iran warned a different carrier USS John C. Stennis not to return to the Gulf as Iranian navy boats sailed by. Read more here-http://tinyurl.com/7qcgenq
-Iranian Boats Shadow USS Aircraft Carrier in Gulf. The American aircraft carrier USS Abraham Lincoln has passed through the Strait of Hormuz, shadowed by Iranian patrol boats. Read more here-http://tinyurl.com/8xu8v2d
-U.S. Navy: Iran prepares suicide bomb boats in Gulf. Iran has built up its naval forces in the Gulf and prepared boats that could be used in suicide attacks, but the U.S. Navy can prevent it from blocking the Strait of Hormuz, the commander of U.S. naval forces in the region said. Read more here-http://tinyurl.com/6pc55of
-U.S. Would Block Iran From Mining Hormuz Strait, Commander Says. The U.S. Navy would move to stop any Iranian attempt to lay mines in the Strait of Hormuz or Persian Gulf as an “act of war” the international community wouldn’t tolerate, the U.S. Navy’s top Gulf commander said. Read more here-http://tinyurl.com/7fs87l6
-Iran Sanctions Tightening as OSG to Frontline Halt Shipping Nation’s Crude. Sanctions on Iran are tightening after Overseas Shipholding Group Inc., Frontline Ltd. and owners controlling more than 100 supertankers said they would stop loading cargoes from the Organization of Petroleum Exporting Countries’ second-largest producer. Read more here-http://tinyurl.com/6s33fx5
-Iran May Disrupt Hormuz Shipping, Supporting Oil Price, S&P Says. Iran might respond to sanctions with low-level provocation such as slowing shipping through the Strait of Hormuz, keeping oil prices at “their currently high level,” according to three Standard & Poor’s reports. Read more here-http://tinyurl.com/7ccpesq
-Iran government cuts off internet access as hardline regime makes a stand. Iran has demonstrated further evidence of its strict regime after the government cut internet links leaving millions without email and social networks. Read more here-http://tinyurl.com/85tyhqm
-Syria Bars Text Messages With Irish-Made Gear. As unrest in Syria erupted into public demonstrations and a bloody crackdown that has claimed over 6,000 lives in the last year, the regime of Bashar al-Assad sought to neutralize one of the most potent tools in the protesters’ arsenal: text messages sent via mobile phones. Read more here-http://tinyurl.com/7kea9q6
-Iran presses ahead with attack on dollar. Last week the Tehran Times noted that the Iranian oil bourse will start trading oil in currencies other than the dollar from March 20. This long-planned move is part of President Mahmoud Ahmadinejad’s vision of economic war with the West. Read more here-http://www.gata.org/node/10987
-Russia faced major nuclear disaster in 2011. Russia came close to nuclear disaster in late December when a blaze engulfed a nuclear-powered submarine carrying atomic weapons, a leading Russian magazine reported, contradicting official assurances that it was not armed. Read more here-http://tinyurl.com/75sxxe6
-Est. 3,500 Somalis Working as Pirates: UN. There are about 3,500 Somali people working as pirates, attacking and hijacking vessels in the Gulf of Aden and the Indian Ocean, according to Wayne Miller, an official from the United Nations Office on Drugs and Crime. Read more here-http://tinyurl.com/6odl9jx
-Bin Laden Told His Kids To ‘Go To The US And Live In Peace.’ Read more here-http://tinyurl.com/7cy9jln