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[contrarian2investor] 13/4/2010 16:46

Hi traderabc,

Thanks for your reply.

It would appear that the US markets are waiting for JPM & Goldman Sachs to fire them even higher.
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Posted on 04/13/10 at 8:00am by Zacks

U.S. Bank Failures Hit 42

U.S. regulators on Friday shuttered Myrtle Beach, South Carolina-based Beach First National Bank, pushing up U.S. bank failures to 42 so far in 2010. This compares to a total number of bank failures of 140 in 2009, 25 in 2008 and only 3 in 2007.

Although the economy is showing signs of a gradual recovery with large financial institutions stabilizing, tumbling home prices, soaring loan defaults and rising unemployment continue to take their toll on small banks.

While we expect economic recovery to gain momentum soon, there remain lingering concerns in the banking industry. Failure of both residential and commercial real estate loans as a result of the credit crisis has primarily hurt banks. As the industry tolerates bad loans made during the credit explosion, the trouble in the banking system goes even deeper, increasing the possibility of more bank failures.

Beach First National Bank had total assets of about $585.1 million and total deposits of about $516.0 million as of Dec 31, 2009. Among the FDIC-insured banks, this is the first failure in South Carolina since 1999.

The recent failure represents another impact on the Federal Deposit Insurance Corporation's (FDIC) fund meant for protecting customer accounts, as it has been appointed receiver for the bank.

When a bank fails, FDIC reimburses customers for their deposits of up to $250,000 per account. The outbreak of bank failures has significantly stretched the regulator's deposit insurance fund. However, the FDIC has about $66 billion in cash and securities available in reserve to cover losses arising from bank failures. Also, the FDIC has access to the Treasury Department's credit line of up to $500 billion.

The failure of Beach First National Bank is expected to cost the federal deposit insurance fund (DIF) about $130.3 million.

Thomasville, North Carolina-based Bank of North Carolina will assume all of the deposits and assets of Beach First National Bank. The FDIC entered into a loss sharing agreement with Bank of North Carolina for $497.9 million of Beach First National Bank's loans and other assets.

In the fourth quarter of 2009, the number of banks on the FDIC's list of problem institutions grew to 702 from 552 in the third quarter. This is the highest since the savings and loan crisis in 1994.

Increasing loan losses on commercial real estate are expected to cause hundreds more bank failures in the next few years. The FDIC anticipates bank failures to cost about $100 billion over the next three years.

The failure of Washington Mutual in 2008 was the largest in U.S. banking history. It was acquired by JPMorgan Chase (JPM). Other major acquirers of failed institutions since 2008 include Fifth Third Bancorp (FITB), U.S. Bancorp (USB), PNC Financial (PNC) and Regions Financial (RF).


c2i

[traderabc] 13/4/2010 08:41

Ted Butler Commentary
April 7, 2010



A Time to Act

The reaction to the CFTC meeting on March 25 continues to be great in precious metals circles. More commentary has been generated by this meeting than even I expected. The hearing brought to the forefront the most important issues in silver, namely, position limits, concentration and the allegations of manipulation on the short side. This is great news for silver and gold investors, as it promises to finally expose and remedy the 20-year downward manipulation in silver.

[traderabc] 12/4/2010 22:56

"But we are at the brink now...a solution has to be found in a matter of days."
Soros (last week)


Perhaps this was the 'solution' he mentioned. Longer term it should be a complete failure, as creating more debt to solve a problem of too much debt is a deeply flawed concept.



Euro rallies after ministers agree Greece bailout terms


Richard Wray and Graeme Wearden
London Guardian
April 12, 2010

The euro rallied this morning after the eurozone's finance ministers agreed the terms of a €30bn (£26bn) bailout fund for Greece, ahead of a crunch week for the heavily indebted nation.

The European single-currency unit jumped about 1% in early trading to $1.3691 against the US dollar, its highest level in nearly four weeks. It also gained 1% against the Japanese yen and reached nearly 88.5p against the pound, as it clawed back some of its recent losses during the Greek crisis.

The relief spread to global stock markets, which hit an 18-month high. In London, the FTSE 100 broke through the 5800-mark for the first time since June 2008. Financial stocks surged in Athens, with shares in National Bank of Greece jumping by more than 10%.

The rally came after finance ministers from the 16 countries settled the details of exactly how they would lend money to the debt-ridden country, and the mechanism for making the cash available. The deal was agreed during an emergency telephone conference organised last night by officials from Spain, which holds the EU presidency.

[traderabc] 12/4/2010 22:53

Soros warns Europe of disintegration


Gillian Tett and Chris Giles
Financial Times
April 12, 2010

The eurozone area and wider European Union is now "on the brink" of disintegration unless Germany steps up and provides loans at below-market rates to Greece, George Soros, the hedge fund manager, has warned.

However, Mr Soros added that he still hoped that Germany and others would be willing to forge a last-minute solution, since the consequence of a break-up would be so dangerous. He was speaking before an announcement on Sunday afternoon by eurozone finance ministers of the terms of a support package for Greece.

"It is 50-50 whether the eurozone breaks up. The damage that break up would cause is so great, that I think that as people realise it, they will pull back from the brink," Soros told the Financial Times in an interview. "But we are at
the brink now...a solution has to be found in a matter of days."

[traderabc] 12/4/2010 22:32

AGRI-FOOD THOUGHTS
by Ned W. Schmidt, CFA, CEBS
Schmidt Management Company
April 12, 2010

While out this week shopping at your favorite food store, do something for one of your grandchildren. Use that fancy cell phone to take a few pictures of those food stores. Be sure to get several of the store fronts with people entering. With those pictures you may be able to convince your disbelieving descendants that a time did exist when grocery stores did not have armed guards.

[traderabc] 12/4/2010 14:43

Intervention Is Prolonging Economic Problems For Years


Bob Chapman
International Forecaster
Monday, April 12th, 2010

We have seen the Fed and the US Treasury execute policy that has served to bail out the financial industry that created the conditions that have persisted for more than 2-1/2 years. During that period Wall Street, banking and insurance may have been saved, but nothing has been done to solve the problems of the economy. What has been done has only complicated the problems. That has been the injection of money and credit in the trillions of dollars and the manipulation of markets. Throwing money at the problem does not solve it. As a result of this profligacy, saving financial firms and heaping unpayable debt on American citizens, the Fed has in that endeavor managed to destroy the US dollar. The situation is subtle but nevertheless in process and has been for more than seven years. As Ludwig von Mises said almost 100 years ago, "debauch the currency – engages all the hidden forces of economic law on the side of destruction." The interference of financial forces has led to today's carnage in the global financial system. As we explained before this was not by chance,
but done deliberately.

[traderabc] 12/4/2010 11:07

2010-4-7 1/2 Federal Reserve BANK CON exposed on MSNBC There is No Money

[kaos3] 11/4/2010 11:40

China is like a drugs dealer deciding when to put stop to a junkie as its payments are more and more trouble - paying with hot and non liquid stuff

[traderabc] 11/4/2010 09:59

Krugman Strikes Again
by Peter Schiff, Euro Pacific Capital | April 9, 2010
Print

In a commentary two weeks ago, I rebutted dangerously silly arguments put forward by New York Times columnist Paul Krugman about how the United States should pressure China to drop its support for the U.S. dollar (click here to view). Although there is far more happening in the world outside of Mr. Krugman's brain than within it, fresh drivel from the acclaimed Nobel Prize winner compels me to turn my focus there once again.

In today's column, Krugman analyzes the Greek debt crisis, arguing that the best solution for Athens would be to simply inflate away its debt burden with printing press money. Krugman laments that this sensible option is being foreclosed by the monetary priggishness of the German heavyweights in the European Union, who are 'foolishly' seeking to prevent inflation and impose
fiscal discipline.

[traderabc] 11/4/2010 00:26

Soros Says Pound Devaluation Is Option for Next U.K. Government


Jennifer Ryan
Bloomberg
April 10, 2010

Billionaire investor George Soros said the next U.K. government after the May 6 election should decide whether to allow a further devaluation of the pound to rebalance the economy and assist the recovery.

Britain "has more room to use exchange rate adjustments as a way of adjusting the economy" than do nations that use the euro, he said in an interview yesterday in Cambridge, England. "It's a question for the next government to decide. It has a number of options, of which a currency depreciation is one."

The pound has dropped about 25 percent on a trade-weighted basis since the start of 2007, making exporters' goods less expensive overseas. Bank of England policy makers are counting on sterling's weakness to aid the recovery and rebalance the economy away from domestic spending at a time when the nation faces a record budget deficit.

"It's a question now of, if you now cut the budget deficit and borrow less, you could probably keep the currency, raise the interest rate, you could keep the currency from going down," he said. "Britain, by having kept out of the euro, has that option of allowing the exchange rate to adjust."

[traderabc] 11/4/2010 00:18

[OTE49] On the Edge . . . with Chris Powell of GATA
April 10th, 2010 by stacyherbert
Respond

Stacy Summary: On the Edge guest this week is Chris Powell of GATA. Enjoy!

[traderabc] 10/4/2010 10:11

Max Keiser Interviewed by Helen Skopis of Athens International Radio - 09 April 2010

[traderabc] 09/4/2010 15:51

c2i I've edited that post a little as it wasn't very clear. Bottom line when it stops going up they'll knock it down hard again (as usual)

Phase 2 Starts Today! - Gold & Silver Bull Market - Mike Maloney

[contrarian2investor] 08/4/2010 22:33

traderabc,

Thanks for your reply much appreciated.
Didn't we have incidences last year in relation to gold, when purchased but companies struggled/failed to deliver the physical gold. Then attempted to pay the purchaser compensation. Is my recollection correct?

c2i

[traderabc] 08/4/2010 19:22

The lower video is the full one

Thursday, April 8, 2010
Jim Rogers Commodity bull market will end up in a Bubble , Gold could go as high as $2000


Jim Rogers The commodity Bull run is set to continue and May end up in a bubble , Gold will go much Higher, expects Gold to be at least $2000 by the end of this decade may be even higher

[traderabc] 08/4/2010 13:08

Does silver stand a chance against Goldman Sachs?


I hate to say it c2i but no I don't think it does.
Mind you I'm biased, I've been long for almost a decade, and witnessed them, periodically slaughtering any market they choose, this makes me somewhat jaded and cynical with this in regard.

With precious metals they knock them down, very hard, but never for long.
Every time they did this in the last decade, it was ALWAYS a very good idea to buy at those points, as a few weeks/months latter they made good recoveries.
Even if you get your timing completely wrong, it doesn't matter much, if you're unleveraged and have patience.
It's tough sitting in a 40% loss on a mis timed buy, it's even harder to buy more, but I have found it works for me either way buy high or low, it doesn't matter in the longer term. The real issue presently is what to buy, physical (much more expensive) or funds (possibly a total fraud).

I hope I'm wrong about this, I hope it will be different this time, but I do believe that this is a rigged market in the short term and a truer one longer term.

In light of the recent revelations which basically admit this market is rigged
with 1 oz of physical to 100 oz paper, perhaps G.S. and the like will be overrun with people demanding physical delivery. It's game over if metal exchanges fail to deliver, but so far they have always honored their terms. (except once with nickel on the LME)
The scandals and repercussions don't bear thinking about if they fail, it could make the last 'crisis' look like a walk in the park.

[traderabc] 08/4/2010 12:18

I think the era of valuable paper money/assets is over, it is beginning to be perceived for what it is, worthless paper, backed by nothing more than hot air.

I'm shocked that Argentina will be a net importer of beef, that is truly amazing.

[contrarian2investor] 08/4/2010 12:16

traderabc,

Does silver stand a chance against Goldman Sachs?

The fact they recently bought into the LME warehousing market does not bode well for commodity metals transparency.

c2i

[049balt] 08/4/2010 12:09

In the Irish Farmers Journal today, global beef prices up 15% this year and milk prices soar 20% at NZ. auction, last week I read that China would have to import beef for the first time to meet demand and that Argentina, a huge beef exporter, would be a net importer this year. This is sweet music to my ears, is the era of cheap food over?.

[traderabc] 08/4/2010 11:59

This is very important, free speech is a corner stone of democracy, I urge anyone reading this thread please take a minute and sign this.



FREE SPEECH NOT FOR SALE - SIGN THE ONLINE PETITION (FREE) Remove Favourite
Click here for related discussions
Loverat - 12 Dec'09 - 06:49 View 'Loverat' profile

Sign the petition for Libel Reform. The libel laws in this country are just rubbish and unfair.

When you have signed the form you will be taken to a template letter which will be sent to your MP. The momentum is building for radical changes to stamp out the laws which affect your free speech.

Take a look at the site and

Sign it now.

[traderabc] 08/4/2010 11:45

[KR32] Keiser Report – Markets! Finance! Scandal! And Matt Taibbi
April 8th, 2010 by stacyherbert

Stacy Summary: We look at the scandals of Prozac pilots and Chinese drywall; Timothy Sniveling Scamster Geithner, asking "what choice did the President have?", and finally, Jamie Dimon, the most dangerous man in America, complaining about the demonization of mega-banks. Max also talks to Rolling Stone journalist, Matt Taibbi, about "Looting Main Street."

[traderabc] 08/4/2010 10:45

BILL MOYERS JOURNAL | William K. Black | PBS

[traderabc] 07/4/2010 23:12

They weren't winning in November, these robber barons are not off the hook by a long shot, their flawed $, absurd derivatives and irrational government may well seal their fate.

(one sunny day ;-)






"Here's the real message people should take away:
Goldman plays to win. And it usually wins. Get over it."


Goldman Again Tries To Dispel Notion That It Bets Against Its Clients


Henry Blodget
Business Insider
April 7, 2010

Goldman is once again rebooting its PR strategy with respect to the fact that it went short the housing market while selling products that allowed its clients to go long.

This complaint has always been overblown - investment banks are in the product-creation business as well as the betting-on-markets business, and the two businesses act independently.

But we doubt Goldman's new approach will help much.

Basically, the firm is now saying that it went short because it was trying to manage its risks and that it still lost money on its residential housing bets (albeit a lot less than it would have lost had it not been short).

That won't come as much consolation for anyone who got creamed on Goldman products that the firm's own traders went short.



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