Radio Show Newsletter
CHARTS OF THE WEEK-QUOTES-QUICK HITS
-CHART OF THE WEEK: Here’s A Look At Super Bowl Ticket Prices Through The Years. If you want to get a ticket to the biggest football event of the year, you have to be prepared to shell out some serious cash. But years ago, tickets were much more affordable. Even back in 2001, you could get a ticket for as cheap as $350. As the NFL has gained popularity though, the prices have gone up and up. This year, tickets at face value range from $600-$1,200, which is about the same as the 2011 Super Bowl. Here’s a look at the prices of face value Super Bowl tickets through the years. Read more here-http://tinyurl.com/7exzpnl
-“I cannot predict how long policymakers can hold economic Armageddon at bay with spin, money creation, currency swaps, intervention in gold and silver markets, and outright lies. The onset could be sudden and take place this year, but we shouldn’t underestimate the power of spin over a gullible public that trusts ‘their’ government and fervently believes that Muslim terrorists are out to get them and that the demise of the Constitution, the product of a eight hundred year struggle that produced Anglo-American civil liberty, is worth the price of ‘safety.’ There is no safety in a police state and a debauched currency. The comfortable world that Americans have known is falling apart at the seams.” Dr. Paul Craig Roberts January 6, 2012
-Volcker: “Confidence in Government is Shaky.” Together they have 120 years experience in financial markets. John Bogle, 82, popularized index investing. Paul Volcker, 84, broke the back of 15 percent inflation as Federal Reserve chairman in the 1980s. Today, they shared the same stage in New York and this view: confidence in the U.S. financial system is broken. “There’s no question that confidence in government is shaky,” Volcker said. Washington is “filled up with law firms that cover whole city blocks. Lobbying firms. And it’s all living off the influence of the government.” Read more here-http://tinyurl.com/6nafm7p
-Fed’s Dudley Sees ‘Significant Impediments’ to Economic Recovery This Year. Federal Reserve Bank of New York President William C. Dudley said the U.S. economy will probably slow this year while confronting risks “skewed to the downside.” “It is unlikely that the faster growth experienced in the fourth quarter of 2011 will be matched in the first half of 2012,” Dudley said today in remarks in New York. “In addition to the temporary nature of some of the recent improvement, there are significant impediments to a robust recovery.” Read more here-http://tinyurl.com/7k7b9bb
–Gross Says Zero Rates Leading to Death of Abundance, Birth of Austerity. Bill Gross said the zero-bound interest rate policies embraced by central banks including the Federal Reserve may end up killing as opposed to creating credit and developed economies may suffer accordingly.
Zero-bound interest rates don’t always force investors to take more risk by purchasing stocks or real estate, Gross said. When investors are more concerned about the return of, rather than returns on, their money, the liquidity being provided by central bankers can instead be “trapped” in a mattress, bank account or Treasury bills, he wrote. “We are witnessing the death of abundance and the borning of austerity, for what may be a long, long time,” Gross said. Read more here-http://tinyurl.com/7eq8d62
-BlackRock’s Doll Says QE3 Unlikely in Contrast to Gross. BlackRock Inc., the world’s biggest asset manager, says the Federal Reserve will refrain from conducting a third round of debt purchases as the economy grows.
The outlook contrasts with that of Bill Gross, who runs the world’s largest bond fund at Pacific Investment Management Co. and says the Fed may buy several more times. The central bank has purchased $2.3 trillion of debt in two rounds of quantitative easing known as QE1 and QE2 as it seeks to support the world’s biggest economy.
Chairman Ben S. Bernanke said Jan. 25 that he’s considering another program of purchases. “QE3 will be seen only if the U.S. economy flags,” Bob Doll, chief equity strategist at BlackRock said. “Ben Bernanke will use it if we have a rainy day and only then,” said Doll. Gross wrote that a third, fourth and fifth round of easing “lie ahead,” in a Twitter post last week. Read more here-http://tinyurl.com/7kdzjbk
-Harvard’s Feldstein Sees Slow Growth While Doubting Fed Easing. U.S. economic growth may not top 2 percent this year and a third round of quantitative easing by the Federal Reserve would have little effect, said Martin Feldstein, a professor of economics at Harvard University. “We’re going to have a hard time reaching 2 percent this coming year,” he said in an interview.
The economy is still in a “danger zone,” Feldstein said, even as the recession risk “is less now than it was.” Feldstein, a member of the committee that dates recessions, said any move by the Fed to conduct a third round of quantitative easing, known as QE3, is “not the solution.” The economy wouldn’t “get much help from more monetary stimulus,” he said. Read more here-http://tinyurl.com/7w3jjza
-Gary Shilling: China’s economy is headed for a “hard landing” this year as weaker demand overseas chokes off exports, said Shilling, who correctly forecast the U.S. recession that began in December 2007. Read more here-http://tinyurl.com/88mylb5
-Greg Hunter: Mainstream Media Keeps Putting Lipstick on Pig Economy. Read more here-http://tinyurl.com/74cdydq
-Rinehart is Asia Pacific’s Richest Woman. Gina Rinehart, the Australian mining heiress and media investor, doubled her fortune to $18 billion from last year to become the richest woman in the Asia-Pacific region, according to Forbes magazine. Read more here-http://tinyurl.com/8ym5k4g
-These Brothers Are Auctioning Off The Contents Of One Of America’s Wildest Private Museums. Read more here-http://tinyurl.com/6m44x35
-Auto Hacking Seen as Growing Risk With Electronics Frenzy. Drivers can talk with each other via Bluetooth phone connections, ask their cars for directions and dial up satellite radio. The same cars use electronic components to signal the gas pedal to accelerate and control stability. What increasingly worries scientists is that entertainment computers could be manipulated to tell the safety computers what to do. Read more here-http://tinyurl.com/7l56rgq
-A Rare Ferrari GTO Just Sold For A Jaw-Dropping $32 Million. Read more here-http://tinyurl.com/7347mq7
-China Snapped Up Every Single One Of Rolls-Royce’s $1.2 Million ‘Dragon’ Models. Read more here-http://tinyurl.com/78po5kr
-Cybersecurity Disaster Seen in U.S. Survey Citing Spending Gaps. Companies including utilities, banks and phone carriers would have to spend almost nine times more on cybersecurity to prevent a digital Pearl Harbor from plunging millions into darkness, paralyzing the financial system or cutting communications, a Bloomberg Government study found. Read more here-http://tinyurl.com/82ld3uv
-Study: Workers Spend $1,000 Yearly on Coffee. Read more here-http://tinyurl.com/8xvs6wb
-World lacks enough food, fuel as population soars: U.N. The world is running out of time to make sure there is enough food, water and energy to meet the needs of a rapidly growing population and to avoid sending up to 3 billion people into poverty, a U.N. report warned. Read more here-http://tinyurl.com/867ggvo
-Forget about global warming its global freezing we need to worry about. Read more here-http://tinyurl.com/724xv4s
-The World’s First Sports-Betting Hedge Fund Has Collapsed After Losing $2.5 Million. Read more here-http://tinyurl.com/7ovw4oz
-Ex-RBS Chief Goodwin Stripped of Knighthood. Fred Goodwin, Royal Bank of Scotland Group Plc’s former chief executive officer, was stripped of his knighthood by the U.K. authorities after he led the 285-year-old lender into the world’s biggest bank bailout. Read more here-http://tinyurl.com/7dr2gsf
-15 Inspirational Quotes From The Greatest Business Movies Of All Time. Read more here-http://tinyurl.com/6p84ylb
-US Treasure Hunter Says He Has Found A Sunken British Ship With $3 Billion Worth Of Platinum. Read more here-http://tinyurl.com/6rxco52
-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 radiant cut fancy intense yellow internally flawless Diamond. Colored diamonds are the world’s most concentrated form of wealth. A colored diamond portfolio worth millions of dollars fits inside an envelope and can easily be transported in your coat pocket. They can be transported quietly and legally, and sold globally in most major cities. These facts alone make colored diamonds worthy of consideration by investors/collectors seeking discreet investment ideas. Harold Seigel. See video of the Featured Diamond here-http://tinyurl.com/84jccrq
-How Diamond-Studded Magma Rises From Earth’s Depths. Carbonate-rich material likely helps gems race to the surface, study says. The recipe for making diamonds is no secret: Take carbon and squeeze it under the extremely high temperatures and pressures found deep inside the Earth. The mystery lies in how the prized gemstones then get delivered from the depths to parts of Earth’s crust that are accessible to miners. Read more here-http://tinyurl.com/7yopaop
-CHART OF THE WEEK: Severely depressed real estate prices continue to be a concern for investors. For some perspective on the magnitude of the decline in home prices, today’s chart presents the median single-family home price divided by the price of one ounce of gold. This results in the home-gold ratio or the cost of the median single-family home in ounces of gold.
For example, it currently takes a relatively low 105 ounces of gold to buy the median single-family home. This is dramatically less than the 601 ounces it took back in 2001. When priced in gold, the median single-family home is down over 80% from its 2001 peak, remains well within the confines of a six-year accelerated downtrend and remains very near its 1980 trough. Read more here-http://tinyurl.com/6tmbs6e
-“As every day goes by, I see deflation in the things you own and inflation in the things you need.” Kyle Bass
–Gold rose 11 percent in January, the largest one-month gain since August 2011 and the largest for the month of January since 1980, thanks to a combination of the weakness in the dollar from a Federal Reserve commitment to keep U.S. rates near zero and central bank purchases. The silver price rose by nearly 20 percent last month, in its largest monthly rally in nine months. Reuters
-“Gold, unlike all other commodities, is a currency and the major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.” Alan Greenspan, ex-US Federal Reserve Chairman, August 23, 2011
-One of my biggest technical themes is gold market sentiment. Negativity has been so great that it has driven even large and long-term players out of gold in droves. This type of sentiment situation has made the gold market ripe for price explosion to the upside.
It’s as simple as understanding that once the gold market money is out it really has only one direction to go eventually, and that’s right back into gold. That’s what happened Wednesday, as the Fed announced their extended ultra low interest rate policy.
I am looking for gold to move towards $1804.40 based upon sentiment analysis and superior volume performance since the Fed’s announcement. There is also strong potential for an inverse h&s pattern to be completed. My bigger target for gold this year is $2300, likely acquired in December. Morris Hubbartt
-Egon Von Greyerz: Gold Market Positioned for Massive Upside Move. “The move in gold, so far, looks extremely good. I’m always pleased that we don’t have a straight move up, although I do think we will have faster moves higher in the not too distant future. This is strong action with small corrections. We are at $1,730 today and I think within the next couple of months we will certainly be touching $1,900 and continuing higher from there. I don’t think $1,900 will be a stopping point for very long. Read more here-http://tinyurl.com/7qt994o
-Richard Russell: Gold Threatening Dollar’s Reserve Currency Status. Read more here-http://tinyurl.com/84ppoac
-Rick Rule: Gold, Silver, Takeovers & 2,000% Gains. “I continue to believe that when rational people are confronted with the choice between owning dollars or euros or owning gold, increasingly people are owning gold. I continue to believe the intermediate and longer-term move in the gold price is higher. I think the gold price, in US dollar terms, moves inexorably higher.” Read more here-http://tinyurl.com/7yles5x
-Peter Schiff: Gold Headed Higher as Dollar to Continue Plunge. When asked about gold specifically, Schiff responded, “Well, you know we had the Dennis Gartman shakeout, although he is now wishing he was back in. He’s now bullish again but he doesn’t own it (gold) because he sold it near the lows.
But a lot of people got scared. I think the chart looks great for gold and silver, so I’m expecting a big rally. A lot of people were nervous about the markets in December. We had a lot of our own clients that got scared and we saw people moving into cash.
Again, timing the market is very difficult because as it turns out, January was the best January since 1994. So we had a huge move up in foreign stocks and if you couple that with the weakness in the dollar, the returns are amplified even more. Once we got everybody worried, the markets promptly went the other way.”
Schiff added this regarding the US dollar: “I think we’ve got a bigger decline coming. If we break 76.5 and then 74.5, if we take out that trendline we’ll be going for the lows from May, which was around 72. If we take that out we are going for the record lows of 70 and change from March of 2008.” Read more here-http://tinyurl.com/7oor56f
-Caesar Bryan: Tidal Wave of Gold Buying as Confidence Lost. Read more here-http://tinyurl.com/7m5ey8j
-Rob Arnott: The Coming Inflation is Going to Destroy Fortunes. Read more here-http://tinyurl.com/7jzs4ma
-Celente: War, Bank Runs, Riots & Gold Going Mainstream. Read more here-http://tinyurl.com/7xg8or2
-Fleckenstein: Get Ready, Public to Enter Gold & Silver Markets. When asked if that new bid in gold and silver meant the metals could explode to the upside, Fleckenstein responded, “Sure, because a gigantic amount of buying in the metals has been from China and India. The average American has been more concerned about preservation of capital.
I’m suggesting that’s going to change and if you are going to have Americans buying gold, on top of the Chinese and the Indians, and the Europeans get involved, you are not going to be able to increase supply, so the only thing left to adjust is going to be price.” Read more here-http://tinyurl.com/7nhhrf2
-Lewis Lehrman calls on Republicans to unite on ‘sound dollar’ platform. Read more here-http://www.gata.org/node/10934
-More indications that official gold data is no good. Read more here-http://www.gata.org/node/10949
-$3 million in gold nuggets stolen from Yreka courthouse. Read more here-http://tinyurl.com/6w3wkfx
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
-Leeb: Silver to Break $100 This Year & Gold Bull on the Move. “I don’t want to sound like a nut, but I think its pretty hard to be too bullish on silver right now. One major reason is China. To give you an update, we have seen China continue to ratchet up their goals for solar energy. Instead of looking for 20 gigawatts by the year 2020, now they are looking for 50 gigawatts.
And where there is solar there is going to be big demand for silver. We’ve seen a drawdown in inventories of silver and production growth has definitely slowed. I think the outlook for silver, both as an industrial metal and certainly as a monetary metal, is as bright as it can possibly be. I’m sticking with my target of at least $100, but I tell you, it will happen this year. We are definitely headed for triple digit silver in the not too distant future.” Read more here-http://tinyurl.com/76holyw
-My commentary here for several weeks has been, “silver is my asset of choice under $30″. The opportunity has been there to get more silver at a great price. Price has started to move above $30. I am now targeting $36 in the shorter term. Longer term I’m looking for $60 by the end of the year, and at least $90 within 18-24 months.
Silver has a long way to go. I see $36 in the short term, where you should take some profits. I expect a pullback from that price area. I am projecting the completion of an inverse head and shoulders formation that will take silver straight back up to the $44 area, where you should do some more profit taking. Morris Hubbartt
-Alf Field: If Gold goes to $4,500, Where does Silver go? Thus the gain in wave 3 of Major Three should be larger than +464%. It should be a gain of at least 500%. Starting from the $26.39 low, a gain of 500% would produce a target price of $158.34 for silver. That is the number which equates with the $4500 price forecast for gold and produces a silver to gold ratio of 28.4 ($4500 divided by 158.34). Read more here-http://tinyurl.com/73vgd5y
-Egon von Greyerz: Alf Field Calls for $158 Silver & Swiss Look to Gold. Here is what von Greyerz had to say about Alf Field’s call for $158 silver: Overnight I received an email from my good friend in Australia, Alf Field. To his amazement he found the silver chart, from an Elliott point of view, runs in parallel to the gold chart.
His count is now very clear that silver will, in the next move reach $158.” “Alf’s next target for gold is $4,500 and I think this silver target of $158 makes sense because that would put the gold/silver ratio just under 30. I think we could see Alf’s targets of $4,500 gold and $158 silver this year or certainly in the next 18 months. This is going to be a quick move.
In Elliott terms this is the 3 of 3, which is the strongest wave. I mentioned to you previously that gold has already broken out to the upside in its 3rd of a 3rd wave. Silver hasn’t quite broken out yet and we need to see silver break above the $36 to $37 area to establish silver has entered this next leg higher, which according to Alf targets $158.
So, we’re not far away and the way I see silver now it’s going to happen very quickly (the breakout). I agree also with James Turk that once silver clears the level I described, we could see $60 to $70 very quickly. But we should see the more aggressive target of $158 in the next 12 to 18 months.” Read more here-http://tinyurl.com/6sdl6w2
-Egon von Greyerz: Silver Update. I really like the action of silver. Silver still hasn’t broken out like gold has, but as I said to you last time, I expect that to happen soon. It will break out around the $37 level. That’s going to happen very quickly because the gold/silver ratio is moving down nicely, but I think it will soon accelerate lower and silver will move a lot faster to the upside than gold. So I can see $37 being taken out within the next 30 days and then we will just start flying from there. It won’t take long to get up to $50 again.” Read more here-http://tinyurl.com/7qt994o
-Rick Rule: Silver Update. “Silver is already up nicely off its lows. It’s likely also that intermediate-term, that move is higher (in silver). I think we’re in a secular bull market. There are more people in the world wanting more stuff and they are more able to afford it. At the same time we are in a secular bear market in paper money. I see the next couple of years as being interesting in a positive sense for metals buyers and gold and silver share buyers.” Read more here-http://tinyurl.com/7yles5x
-Hubert Moolman: Silver And The Shift To Measuring Wealth In Ounces Instead Of Dollars. Read more here-http://tinyurl.com/73fmgdx
-Clive Maund: Silver Market Update. An important reversal has now completed in silver and it is in the early stages of what promises to be a powerful uptrend that should take it comfortably to new highs. Read more here-http://tinyurl.com/o4j7
–Silver Powering 20 Million Homes as Glut Subsides. Record industrial demand for silver and resurging investor interest is diminishing a supply surplus, driving the metal used in everything from solar panels to batteries into its best start to a year in almost three decades. Silver may still be cheap relative to gold, with a price ratio of 52.2, down from 57.4 in December. It averaged 32.4 in 1980, when silver reached a record $50.35 in New York trading. In inflation-adjusted terms, that peak would be equal to $138.31 as of last year, according to a calculator from the Federal Reserve Bank of Minneapolis. Read more here-http://tinyurl.com/7ukpgdt
-Italy, Spain Are Among Five Euro-Zone Nations Downgraded by Fitch Ratings. The credit ratings of Italy, Spain and three other euro-area countries were cut by Fitch Ratings, which said the five nations lack financing flexibility in the face of the regional debt crisis. Read more here-http://tinyurl.com/7rw6fbz
-Fitch: Portugal Not a Big Risk to Euro Zone. Portugal doesn’t present the risk of default that Greece does to the rest of the European Union because officials there are seeking to contain the nation’s financial crisis, according to Fitch Ratings. “The government there is committed and credible. The economy is highly indebted, but they are working on organizing a debt-for-equity swap,” David Riley, head of the sovereign-debt unit at Fitch Ratings, said at a conference in New York. “That is the right strategy and in the near term we don’t see them as a significant risk to the rest of the euro zone.” Read more here-http://tinyurl.com/728dmwo
-Investors fear mounting losses in Portugal as second rescue looms. Portugal is fighting a losing battle to contain its public debt and may be forced to impose haircuts of up to 50pc on private creditors, according to a top German institute. Read more here-http://tinyurl.com/83xl4gx
-Roubini Says Eurozone ‘Wreck’ May Force Greece Out in Year. Nouriel Roubini, the New York University economist who predicted the financial crisis, said Greece will probably leave Europe’s single currency within 12 months and could soon be followed by Portugal. “The euro zone is a slow-motion train wreck,” Roubini said in a panel discussion in Davos, Switzerland.
“Not only Greece, other countries as well are insolvent.” Roubini said he sees a severe recession in Europe and a 50 percent probability “that over the next three to five years the euro zone will break up.” “Not all the members are able to stay,” he said. “Greece and maybe Portugal may exit the euro zone Greece within the next 12 months. Portugal may take a while longer.” Read more here-http://tinyurl.com/6vt6npk
-Rising Deficits Pose Major Threat to Economy: Bernanke. Rising federal budget deficits are posing a significant threat to the U.S. economy and are likely to cause a crisis if not brought under control, Federal Reserve Chairman Ben Bernanke told Congress Thursday.
Calling the situation “unsustainable,” the central bank leader pointed out that surging health-care costs, along with the high level of government spending used to pull the economy out of recession, are creating fiscal hazard. “Having a large and increasing level of government debt relative to national income runs the risk of serious economic consequences,” Bernanke told the House Budget Committee.
“Over the longer term, the current trajectory of federal debt threatens to crowd out private capital formation and thus reduce productivity growth.” At the same time, he also warned Congress not to pull the reins too tightly so as to threaten growth. Read more here-http://tinyurl.com/7luqh7w
–Government Deficit Report Inflames, Illustrates Budget Debate. A report showing the government will run a budget deficit of more than $1 trillion for the fourth consecutive year inflamed a debate over the federal shortfall that’s unlikely to be resolved before the November election.
The Congressional Budget Office said it expects this year’s gap between spending and revenue to total $1.1 trillion, down from last year’s $1.3 trillion. It attributed the decline to stronger tax revenue and the smallest increase in spending in years.
The report illustrates the stakes in the presidential and congressional elections. It shows that future deficits may vary widely depending on budget decisions lawmakers are unlikely to make until after the November vote. Read more here-http://tinyurl.com/87ffk47
-The 5 Scariest Debt And Unemployment Charts From The CBO Report. The Congressional Budget Office has released its updated 10-year budget and economic forecast. Actually, the CBO offers two forecasts. It has a baseline forecast, which assumes current law stays in place. It also has an a “alternative” forecast which assumes current tax and spending policy stays in place as is even if the law says it must change in coming years. Read more here-http://tinyurl.com/7zalxso
-Simpson Says ‘Terrified’ Obama Walked Away From Deficit Issue. President Barack Obama “walked away” from his bipartisan U.S. deficit-cutting commission’s plan “because he knew he’d be torn to bits,” said former Republican Senator Alan Simpson, who was co-chairman of the panel. Obama is “terrified” of the deficit issue, Simpson said in an interview. “He didn’t deal with it” in his annual State of the Union address to Congress on Jan. 24. Read more here-http://tinyurl.com/7oh56ru
-Illinois Faces ‘Potentially Paralyzing’ $35 Billion Unpaid Bill Backlog. Illinois’s unpaid bills may more than triple to $34.8 billion by 2017 unless lawmakers and Democratic Governor Pat Quinn immediately bring Medicaid and pension spending under control, said a research group.
The “potentially paralyzing” backlog, projected to reach $9.2 billion when this fiscal year ends June 30, would be fueled by an “unsustainable” increase in Medicaid spending, according to the Civic Federation, which calls itself a nonpartisan government research organization. Read more here-http://tinyurl.com/86j5zmu
-California Faces Cash Shortfall by March on Low Receipts, Controller Says. California’s cash may be exhausted by March as tax collections trail budgeted amounts, Controller John Chiang said in a letter to lawmakers. Read more here-http://tinyurl.com/8878gk9
-California Will Borrow Up to $1B to Skirt Crisis. California’s will seek a loan from Wall Street of as much as $1 billion to pay bills as the most populous U.S. state’s tax collections trail budgeted amounts, according to the treasurer’s office. Read more here-http://tinyurl.com/72c79ta
-Regulators close banks in Tennessee, Florida, Minnesota, making 7 bank failures in 2012. Regulators on Friday closed banks in Tennessee, Florida and Minnesota, lifting to seven the number of U.S. bank failures this year. Read more here-http://tinyurl.com/7f4wn9q
-Jim Sinclair: The Impending Undeclared Default Of 5 Major US Banks. Listen here-http://tinyurl.com/7u9o2pb
-Spain to Unveil Bank Overhaul to Clean Up Real Estate. Spain will give struggling banks more time to take their share of 50 billion euros ($65.7 billion) in real estate charges if they agree to merge with other lenders. Read more here-http://tinyurl.com/6oxnjgk
–Wegelin clients pulled $4 bln, prompting sale-paper. The break-up of Switzerland’s oldest bank Wegelin, involved in a row with U.S. authorities over tax cheats, became necessary when clients pulled 4 billion Swiss francs ($4.35 billion) of wealth, Der Sonntag newspaper reported on Sunday, citing unspecified sources.
Under pressure from the investigation, the 270-year-old institution moved assets of 21 billion Swiss francs ($22.9 billion) to a subsidiary Notenstein Privatbank, which was then bought by cooperative bank Raiffeisen. Read more here-http://tinyurl.com/7pbfh5s
-Incredible Shrinking Bankers at Davos Humbler Amid Austerity. Leaders of the world’s biggest banks touted the virtues of austerity at the World Economic Forum in Davos for themselves, not just for over-indebted governments. Many arrived in the Swiss Alps following a year marked by weak revenue, declining stock prices and cuts in jobs and compensation.
The finance and banking industries remain the “least trusted” for the second consecutive year, according to a 20-country survey released earlier this week by public relations firm Edelman. “Last year every bank thought they could grow their way out of trouble,” Huw van Steenis, who oversees European bank research for Morgan Stanley in London, said between meetings with investors and policy makers in Davos. “Now they realize they have to shrink their way out of trouble.” Read more here-http://tinyurl.com/7wmst3r
-After a Delay, MF Global’sMissing Money Is Traced. Investigators have determined what happened to nearly all of the customer money that disappeared from MF Global around the time of its bankruptcy last Oct. 31, but have not publicly disclosed their progress, fearing that doing so might cripple efforts to recover the cash and pursue potential wrongdoing, people briefed on the investigation said. While authorities have traced hundreds of millions of dollars to banks, MF Global’s trading partners and even the firm’s securities customers, investigators remain uncertain about whether they can retrieve the money. Read more here-http://tinyurl.com/7vet2n2
–MF Global U.K. Clients Getting Initial Payout. MF Global Holding Ltd.’s U.K. administrators plan to make the first payment to British clients of the failed brokerage, returning 26 cents on the dollar. Read more here-http://tinyurl.com/6n6lepd
–MF Global Told S&P It Had ‘Never Been Stronger’ One Week Before Collapse. A week before MF Global Holdings Ltd. collapsed, its chief financial officer told Standard & Poor’s in an e-mail that the futures broker had “never been stronger.” Read more here-http://tinyurl.com/865e4u9
-MF Global Risk Chief Switch Stalled Euro Debt Cut by Six Months. U.S. lawmakers questioned whether MF Global Holding Ltd’s decision to replace Michael Roseman as chief risk officer a year ago was driven by his warnings over bets on European debt that helped push the firm to bankruptcy. Read more here-http://tinyurl.com/78gaqva
-CHART OF THE WEEK: ‘Core Economic Growth Slowed Sharply In Q4.’ In regards to last week’s mediocre GDP report, Nomura cuts right to the chase in a note titled ‘Core Economic Growth Slowed Sharply’ in Q4. Read more here-http://tinyurl.com/7bxtn24
-U.S. Economy Grows 2.8%, Less Than Forecast. Restrained spending by consumers held growth in the U.S. economy to a 2.8% annual pace in the fourth quarter, slower than economists forecast while still the fastest pace in more than a year. Read more here-http://tinyurl.com/7pqoeos
-2011 GDP: 1.7%. That’s the final, pathetic growth number for 2011. From the just-released GDP report: Real GDP increased 1.7 percent in 2011 (that is, from the 2010 annual level to the 2011 annual level), compared with an increase of 3.0 percent in 2010. Read more here-http://tinyurl.com/88dx7jt
–Canada’s Economy Records Surprise 0.1% Drop in November on Energy Declines. Canada’s gross domestic product posted an unanticipated decline in November, shrinking for the first time in six months on maintenance shutdowns by crude oil producers and lower natural gas extraction. Read more here-http://tinyurl.com/6top9kr
-Euro zone jobless hits highest level since birth of euro. Euro zone unemployment has risen to its highest level since before the euro was introduced, data showed on Tuesday, a day after EU leaders promised to focus on creating millions of new jobs to try to kickstart Europe’s floundering economy.
Joblessness among the 17 countries sharing the single currency rose to 10.4 percent in December, on a par with an upwardly revised November figure, the EU’s statistics office Eurostat said in its release of seasonally-adjusted data. It was the highest rate since June 1998, before the euro was introduced in 1999.
“We’re looking at a further increase over the coming months, so that is worrying,” said Martin van Vliet, an economist at ING. “Look at Greece, where unemployment is some 20 percent, and it is 23 percent in Spain. At a certain point this could lead to political unrest.” Read more here-http://tinyurl.com/7s7elwv
-Europe’s lost generation: how it feels to be young and struggling in the EU. Viola Caon left her Italian home to find work. Now she returns to see how her former classmates are faring and in the week that shocking figures showed how badly Europe’s youth is being hit by the unemployment crisis, we also talk to hard-hit twentysomethings in Athens and Madrid. Read more here-http://tinyurl.com/6llqxu4
-CHART OF THE WEEK: Your Dreams Of A Housing Rebound Just Got Smashed. Maybe Robert Shiller who just told us that there’s no housing rebound on the horizon is right. His own housing index, the Case-Shiller Home Price Index, came out this morning, and it will dash the hopes of people who think we’re on the cusp of a rebound. After a little blip upwards, prices resumed their downward slide in November. Depressing. Read more here-http://tinyurl.com/6vjjdh3
–Case Shiller Home-Price Index Falls 3.7%. Residential real estate prices fell more than forecast in November, showing distressed properties are hampering improvement in the U.S. housing market. The S&P/Case-Shiller index of property values in 20 cities declined 3.7 percent from November 2010 after decreasing 3.4 percent in the year ended in October, the group said in New York. Read more here-http://tinyurl.com/72cwqys
–Homeownership rates fall to 66% as downturn nears a bottom. Fewer Americans own homes and many of them are continuing to see values decline. The U.S. Census Bureau reported Tuesday that the nation’s homeownership rate fell to 66% in the fourth quarter, continuing a seven-year drop from a fourth-quarter peak of 69.2% in 2004. Read more here-http://tinyurl.com/7z2wd9r
-Foreclosures Draw Private Equity as U.S. Sells Homes. Private equity firms are jumping into distressed housing as the U.S. government plans to market 200,000 foreclosed homes as rentals to speed up the economic recovery. Read more here-http://tinyurl.com/7ooy4sk
-Robo-Reality: Final Foreclosures Fall as Pipeline Swells. The number of new foreclosures in 2011 dropped nearly 40 percent, according to year-end numbers just released by Lender Processing Services; there is, however, little cause for celebration. The fall is largely due to moratoria and process reviews stemming from the so-called “robo-signing” foreclosure paperwork scandal.
Mortgage delinquency rates were largely unchanged from last year, which means all that distress will be pushed forward to 2012 and beyond. Read more here-http://tinyurl.com/7w7egvy
-Fed Members Laughed As Housing Bubble Grew. Read more here-http://tinyurl.com/849t6um
-Hong Kong Homes Face 25% Drop in Year of the Dragon. The Year of the Dragon, representing wealth and power in China, is shaping up to be the opposite for the world’s costliest housing market, Hong Kong. Read more here-http://tinyurl.com/85q3jxf
-Brisbane Paces Australia-Wide Home Price Decline With 6.8% Slide in 2011. Brisbane home prices plunged the most among Australian capital cities in 2011, as lagging demand weighed on an oversupplied market. Read more here-http://tinyurl.com/7jq2l2v
-Corzine’s Penthouse $2.9 Million Listing Marks 11% Below Purchase Price. A Hoboken, New Jersey, penthouse belonging to Jon Corzine, the former chairman of bankrupt MF Global Holdings Ltd., is on the market with a $2.9 million asking price, 11 percent less than Corzine paid in 2008. Read more here-http://tinyurl.com/7aekvqw
-Trump Opens Canada’s Tallest Condo Tower With $6 Million Toronto Suites. Trump International Hotel & Tower Toronto, Canada’s tallest residential building opens capping a seven-year effort to bring the brand of billionaire Donald Trump to the country’s largest city. Read more here-http://tinyurl.com/7a28r8e
-Seller Wants $158 Million for London Billionaires Row Home. A home in the U.K.’s most expensive neighborhood is being offered for more than 100 million pounds ($158 million), according to the broker handling the sale. Read more here-http://tinyurl.com/74nfrze
-Broke Irishman Builds Billion-Euro House Out of Shredded Bills. Frank Buckley may not be made of money, but his Dublin house literally is. Read more here-http://tinyurl.com/7bf5daf
-Israeli: Iran creating missile to hit U.S. East Coast in reach. Read more here-http://tinyurl.com/76mlagq
-Israel warns time is running out before it launches strike on Iran. Read more here-http://tinyurl.com/76k7snp
-Israel Must be Ready to Strike Iran: Army Chief. Israeli Army Chief of Staff Lieutenant-General Benny Gantz said his country must build up its military capabilities and be prepared to strike if economic sanctions fail to prevent Iran from developing nuclear weapons. Israel must be “willing to deploy” its military assets because Iran may be within a year of gaining nuclear weapons capability, Gantz said. Read more here-http://tinyurl.com/84rueyo
-Iran’s Oil, Tanker Firms Targeted for Sanctions. Read more here-http://tinyurl.com/87a92eq
-Doug Casey on the Coming War with Iran. Read more here-http://tinyurl.com/7c3lhgw
-Taliban “poised to retake Afghanistan” after NATO pullout. The U.S. military said in a secret report that the Taliban, backed by Pakistan, are set to retake control of Afghanistan after NATO-led forces withdraw, raising the prospect of a major failure of Western policy after a costly war. Read more here-http://tinyurl.com/6udlg2k