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- Argonaut Gold Continues its Strong Growth
- Did Gold Just Hit An All-Time High?
- Bank of England’s King Says “Large Sterling Depreciation” Needed, Central Banks “Should Soon Start Easing”, Greece Election “Should Be Supportive for Gold”
- Advantage To Us Skeptics
- Butler: U.S. government has given JPMorgan the green light to manipulate the silver m
- Gold Will Be Top Performer in 2012 - UBS Poll Of 8 Trillion USD Official Sector
- Bob Hoye on why gold miners are winners during deflation
- Gold hedging now just for project finance – GFMS
- Juggling knives to entertain junior financing markets
- Gold:silver ratio path not necessarily bullish for silver investors
- The Edge of Gold Hedging
- Ned Schmidt: No Hard Landing in China−Wall Street Can’t See Forest for the Trees
- Bank of England's King Says Banks ‘Should Soon Start Easing’
- Greece In Panic … Um, Wait!
- Gold Will Be Top Performer in 2012 – UBS Poll Of 8 Trillion USD Official Sector
- Hong Kong Exchanges Bid for LME Beats out ICE
- Inflate or Die
- $8 Trillion Official Sector Likes Bullion – UBS Poll
- Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts
- “A Matter Of Life And Death”: The Collapsing Greek Health-Care System Is In Critical Condition
- Gold Up Ahead of Key Government Events Next Week
- Norcini – European Crisis & Bullion Banks Capping Gold
- UK Treasury and BoE liquor up banks again
- Silver Update: Super Mario – 6.14.12
- Gold & Silver Market Morning, June 15 2012
- John Hathaway: Gold, Gold Mining Shares, and QE: An Attempt to Answer Two Persistent Questions
| Argonaut Gold Continues its Strong Growth Posted: 15 Jun 2012 04:17 AM PDT Here is our interview with Argonaut Gold CEO & President Pete Dougherty. Pete discusses the La Colorada project, which has begun to pour Gold, the San Antonio project, industry struggles and potential for future acquisitions.
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| Did Gold Just Hit An All-Time High? Posted: 15 Jun 2012 03:45 AM PDT By Shaun Connell: Gold isn't in a bull market. It's essentially been a flat market since September of 2011. This isn't an inherently bad thing, but it's unavoidable if we just spend a few seconds looking at essentially any chart of the metal -- the trend is downward with some upswings, and not the other way around. For context, gold is now officially down for 2012, priced in dollars. Priced in Indian currency, it just recently hit an all-time high. But wait, what? Why would I even point out the Indian currency? Because one of the biggest blindsides for investors looking to evaluate assets -- especially gold -- is looking at the market only through dollar-colored glasses. Don't read this as a blind-faith trust in gold profits, of course. There's still a good chance over the next year or so that we'll see a very, very heavy correction in gold prices. Why is Complete Story » |
| Posted: 15 Jun 2012 03:08 AM PDT
SPOT MARKET prices for gold bullion traded above $1620 an ounce during Friday morning's London session – a gain of nearly 4% for the month so far. Stock markets and major government bonds rallied, with analysts speculating on the prospects for further monetary stimulus, including a possible third round of quantitative easing (QE3) from the Federal Reserve, whose policymakers meet next week. Silver bullion meantime hovered around $28.70 per ounce – 3.6% up in June so far, but only 1.1% for this week – while broad commodities gained, with oil edging higher despite Opec's decision Thursday not to lower its production ceiling. Heading into the weekend, gold bullion looked set for a weekly gain of 2.2% by Friday lunchtime in London. Some gold traders in Asia however have reported "sluggish" demand for physical bullion this week. "Our recent call suggesting that gold prices had room to rally," says a note from French investment bank Natixis, "was predicated more upon the prospect of further US easing…it is likely [though] that some of the current weakness in US economic data is linked in part to the ongoing deterioration in the European outlook." "Not many [traders] will dare take on fresh long [positions] ahead of the weekend," reckons Andrey Kryuchenkov, analyst at VTB Capital in London, citing gold's "peculiar behavior recently". "We should stall near this week's highs below $1630, with all attention on Greece, and then the G20 summit next week." "The next big event in the gold world is likely to be the Greek election," agrees a note from HSBC. Greek voters go to the ballot box this Sunday, with Syriza, which has said it rejects the conditions attached to Greece's bailout, neck-and-neck with New Democracy according to the most recent opinion polls. "Whatever the outcome in Europe, it will likely be supportive for gold," says Neil Gregson, who manages JPMorgan Asset Management's Natural Resources Fund. "We've still got the possibility of QE3 in the US, which would be good for gold." Here in London, Britain's chancellor George Osborne and Bank of England governor Mervyn King last night announced £100 billion of stimulus measures, including a "funding for lending" program aimed at cutting banks' borrowing costs in return for promises to lend to the non-financial sector. "It is very hard to argue that monetary policy, in all its forms, has run out of road," Osborne told an audience of financial services professionals at the City of London's Mansion House. "The government, with the help of the Bank of England, will not stand on the sidelines and do nothing as the storm gathers." "Businesses and households are battening down the hatches to prepare for the storms ahead," added King, speaking later at the same event. "The result is that lower spending leads to lower incomes and a self-reinforcing weaker picture for growth." "It is clear from Governor King's speech," says Barclays economist Simon Hayes, "that he has become more gravely concerned about the economic outlook, even over just the past few weeks…[implying] a much increased likelihood that the [Monetary Policy Committee] will sanction more quantitative easing." While the "funding for lending" scheme should help lower borrowing costs, "the core problem remains" says Graeme Leach, chief economist of the Institute of Directors. "Companies alarmed by the Euro crisis will not be eager to borrow, regardless of the cost." King also stated in his speech that "the big picture was, and remains the need to generate recovery while balancing our economy, supported by a loose monetary policy and a large depreciation of Sterling…and a gradual but steady reduction in the [government's] structural budget deficit." Since the onset of the crisis in August 2007, the Pound has fallen nearly 25% against the Dollar. Sterling gold prices meantime have risen more than 200%. Over in Frankfurt, European Central Bank president Mario Draghi said Friday the ECB "will continue to supply liquidity to solvent banks where needed". Hours earlier, King said that the Bank of England "will provide banks with whatever liquidity they require given the prospect of turbulence ahead". Japan's prime minister meantime said Friday that recent gains in the Yen do not reflect Japan's fundamentals, adding that he will relay his worries about currencies and the Eurozone crisis at next week's G20 meeting. "[European] growth is slumping," says Friday's note from Standard Bank currency analyst Steve Barrow in London. "Inflation is falling and there's a possible need to react to the disintegrating European Monetary Union…the Fed, the ECB, the Bank of England, the Bank of Japan and China's [central bank] should all ease policy – and pretty soon." Elsewhere in London, Hong Kong Exchanges and Clearing Ltd has said it will buy the London Metals Exchange for $2.15 billion. "The deal will make Hong Kong Exchanges one of the major metal exchanges in the world," says Charles Li, chief executive at Hong Kong Exchanges. The volume of gold bullion held to back shares in the SPDR Gold Trust (GLD), the world's largest gold ETF, rose by just over three tonnes Thursday, hitting its highest level this month at 1277.4 tonnes, though it remains around 3% off the all-time record set two years ago. The tonnage of silver bullion in the iShares Silver Trust (SLV), the world's biggest Silver ETF, remained static Thursday at just over 9696 tonnes. British pawnbroker Albermarle & Bond meantime have citing falling gold prices as contributing to a profits warning issued today, with fewer people opting to pawn or sell scrap gold bullion such a jewelry. Ben Traynor Gold value calculator | Buy gold online at live prices Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. (c) BullionVault 2011 Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.
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| Posted: 15 Jun 2012 03:03 AM PDT "The amusing denouement to last September's CNBC fiasco falsely claiming on camera a particular gold bar in the depository GLD uses belonged to that entity is (below). Apparently it belonged to ETF Securities, All power to the Internet!" JBGJ, 6/12/2012 The following detailed description of the CNBC fiasco provides yet another justification for Investors adopting a Healthy Skepticism of MSM "News". "*UPDATE: We have now confirmed that the 'GLD' bar marked ZJ6752 is listed in the bar list for the EFTSecurities fund, as stated by Ned Naylor-Leyland. Screen shot of the EFTS bar list including bar ZJ6752 is included below. "We now have indisputable evidence that the gold bar held up by Bob Pisani as a 'GLD' gold bar is actually owned by ETF Securities!! "The Doc spoke with Cheviot Asset Management's Ned Naylor-Leyland Sunday regarding the Euro-zone crisis and the €100 billion Spanish banking system bailout announced this weekend, extreme supply constraints in the physical bullion markets, the new allocated silver exchange launching in China this summer, and gold rehypothecation concerns. "Ned provided some explosive details regarding the infamous GLD gold bar presented by CNBC's Bob Pisani which was quickly discovered NOT to be on the GLD's bar list. "Ned reveals the ACTUAL OWNER of the gold bar shown on CNBC, who HAD NOT GIVEN PERMISSION to CNBC or to Bob Pisani to handle their bullion, and was shocked to see Pisani claim their bar as part of the holdings of the GLD! "In Ned Naylor-Leyland's words, 'this tells you EVERYTHING YOU NEED TO KNOW ABOUT ETF'S!!' "First, for those who are not familiar with the CNBC story: "As our readers are well aware, it was quickly discovered that the gold bar held up by Pisani in the interview stamped ZJ6752 was not included in SPDR's gold bar list. "The story almost immediately went viral, but CNBC went silent on the issue over the actual ownership of the gold bar held by Pisani. "This is what Ned Naylor-Leyland had to say today, regarding the recent concerns that the GLD's gold holdings are actually swaps from the LBMA, and whether investors will one day soon wake up to discover that the bullion they thought they owned is really rehypothecated paper: "I've been saying that to clients, to potential clients, and to my colleagues in London and in the investment world since 2003-4! Effectively, you MUST BE CAREFUL WHICH VEHICLE YOU USE!! "There's no question that at some point this is going to be a HUGE problem! "You'll remember that amazing video interview with Bob Pisani that CNBC ran where they went into GLD's vaults in London- I'm sure you saw that Doc. You know they took his mobile off him and he ended up in the vaults and he held up this bar and he said 'this is the kind of thing that GLD holds custody for you!' And then immediately everyone jumped all over it and said 'wait a minute, that bar isn't on the bar list!'" "Ned Naylor-Leyland Reveals Actual Owner of Bob Pisani's GLD Gold Bar!!" The Doc, silverdoctors.com, 6/12/12 An important related point is that increasing numbers of Investors are justifiably concerned that certain ETF's may not hold all the Non-Hypothecated Precious Metals they claim they do. Indeed, there is also evidence that certain Bullion Banks have for years been selling Naked P.M. contracts in the Future Markets (i.e. selling Metal they do not have) in order to suppress prices. We invite Investors to review the archives of the Gold Antitrust Action Committee (gata.org) where they will find considerable evidence of Gold and Silver Price Suppression. But awareness of these Issues gives Skeptics the Advantage and allows them to Act accordingly: Regarding Gold, for example, one can avoid the risk of owning "Paper Gold" by Buying Physical Metal and Take Personal Possession of it (NO Bank Vaults). Regarding Gold and Silver, the "Secret" (i.e., not reported by the MSM) of which most savvy Investors are now increasingly aware is that supplies of Physical Gold and Silver are very thin. "The secret that the manipulators must keep quiet is that the physical market for gold is very thin on the sell side. Whatever is offered, be it 500 tons or more in manipulation from paper, has been and will continue to be taken." "Stay The Course As Gold Continues Its Progressive March" Jim Sinclair, jsmineset.com, 6/11/2012 Indeed, the evidence indicates the ongoing Price suppression is implemented by a Cartel of Central Bankers (See Note 2). Official Misinformation, Disinformation and Spin regarding the Precious Metals is a characteristic of Official Pronouncements from certain Governments, as well. "…there will be no Spanish banking rescue…" Prime Minister Mariano Rajoy of Spain, 5/28/2012 And about the same time as that Spanish's Prime Minister's statement, Spain's Central Bank Governor insisted there was no need to inject further capital in Spanish Banks. But now, just a few days later, not only has there been an (inadequate) bank rescue, but alsowe have this from Reuters referring to the ongoing Bank Run on Spanish and Greek Banks: "European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro-zone capital controls as a worst-case scenario, should Athens decide to leave the euro." "EU discusses 'limiting ATM withdrawals'", Reuters, 6/12/2012 Didn't the European Banking Authority run stress tests which ostensibly would have prevented the aforementioned outcome? And realistically, is not the gravity of the Eurozone situation reflected in Spain and Italy's 10 year note yields which continue to rise toward the Toxic 7% level? Indeed, unsustainably High Debt levels post a Threat to a variety of Fiat Currency-denominated Assets, including especially those in our Retirement Accounts (since those are meant to be enduring Assets). "Which brings us back to the concerns of our dear readers – like this one: "that the U.S. government will find 'legal' ways to confiscate our 401(k)s, SEP IRAs, IRAs and private pension plans (other than by the use of… inflation)." "We can tell you two things. On the surface, they seem contradictory: 1. It will likely happen by stealth. 2. You will likely get ample warning. "By "stealth," we mean that Uncle Sam won't be so blatant as to liquidate your account and transfer the proceeds to the Treasury. And by "ample warning," we mean that your account won't be the first one to get the stealth treatment. Others will come before you, and you will have time to seek shelter. "The notion of 401(k) confiscation first got traction during the wrost of the 2008 financial panic. "In October of that year," says The 5 Min. Forecast's Dave Gonigam, "the House Education and Labor Committee held a hearing on the idea of eliminating 401(k)s' tax advantages. 'High income' earners, it was suggested, would no longer be allowed to make tax-deferred contributions." "This is the brainchild of the hearing's star witness – an economics professor at The New School in New York named Teresa Ghilarducci. She further suggested that all workers should be forced to contribute 5% of their gross income to a "guaranteed retirement account," or "GRA." "GRA would be invested entirely in government boinds and return an inflation-adjusted 3% a year. Half of the "contribution" would come from you, half from your employer. "In other words, it'd be like Social Security – which would still exist – but with GRAs, the pretense of a "trust fund" would be thrown out the window. Your "contributions" would go straight into the Treasury to be instantly frittered away on fighter jets, food stamps and hot tub parties for employees of the General Services Administration. "The rest is history: Time passed, the market recovered and Ms. Ghilarducci's plan was put on the shelf. "But the "confiscation" camel has come back since. Its noise isn't under the tent yet… although its sweaty nostrils are perhaps visible beneath the tent's seam. "In early 2010, the Treasury and Labor departments proposed – in the words of a Bloomberg story at the time – "ways to promote the conversion of 401(k) savings and individual retirement accounts into annuities or other steady payment streams." "As in 2008, the Internet was set abuzz – suspicious minds rightfully wondering if the funds would be "converted" into Treasuries, perhaps by force. Not so, it turns out: By early 2012, the proposal was reality. The new regulations merely alter the tax rules for insurance companies – making it easier for them to offer annuity-like products to holders of 401(k)s." "'Extraction' by Stealth: The Risk to Your Retirement Account" Addison Wiggin, The Apogee Advisory: Issue 16, June 2012 And one should also be skeptical of the pronouncements of MSM Favorites such as Warren Buffet. Admittedly, Buffet has been an excellent stock picker and business owner, and a wise critic of overleverage via Derivatives (Ticking Time Bombs, or some such, he called them). But he was, and is, wrong about Gold. Gold is up 500%, more or less, in the past decade, a performance which far exceeds that of Berkshire Hathaway stock over the same period. (Awareness of the facts provides, for example, the opportunities referred to in Note 3 below.) Indeed, there is no substitute for the facts regarding Precious Metals, or, in general, no substitute for having Real Numbers (as opposed to Bogus Statistics) when investing. Real Inflation in the U.S., for example, is 9.9% (which is why Deepcaster's High Yield Portfolio is aimed at a Total Return well in excess of that) per shadowstats.com. Real U.S. Unemployment is 22.7% and Real U.S. GDP is a Negative -2.17%. (See Note 1). Finally above all, it is Important to Critique "Hype". A few days before the Facebook IPO, we overheard a Broker Touting the Stock by saying, correctly, that Facebook had 900 Million Regular Users. A friend's Skeptical Rejoinder was, "Of the 7 billion people in the world several billion regularly use Toilets. By your 'logic' I should run out and buy Toilet Manufacturers' Stocks." A healthy skepticism has enormous benefit for investors. Best regards, Deepcaster June 14, 2012 Note 1: Shadowstats.com calculates Key Statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest. Consider Bogus Official Numbers vs. Real Numbers (per Shadowstats.com) Annual U.S. Consumer Price Inflation reported May 15, 2012 2.30% / 9.94% U.S. Unemployment reported June 1, 2012 8.1% / 22.7% U.S. GDP Annual Growth/Decline reported May 31, 2012 2.08% / -2.17% U.S. M3 reported June 10, 2012 (Month of May, Y.O.Y.) No Official Report / 2.43% (e) Note 2: We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster's December, 2009, Special Alert containing a summary overview of Intervention entitled "Forecasts and December, 2009 Special Alert: Profiting From The Cartel's Dark Interventions - III" and Deepcaster's July, 2010 Letter entitled "Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds" in the 'Alerts Cache' and 'Latest Letter' Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster's profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these "Interventionals." Attention to The Interventionals facilitated Deepcaster's recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably. Note 3: There are Magnificent Opportunities in the Ongoing Crises of Debt Saturation, Rising Unemployment, negative Real GDP growth, nearly 10% Real U.S. Inflation (per Shadowstats.com) and prospective Sovereign and other Defaults. One Sector full of Opportunities is the High-Yield Sector. Deepcaster's High Yield Portfolio is aimed at generating Total Return (Gain + Yield) well in excess of Real Consumer Price Inflation (9.94% per year in the U.S. per Shadowstats.com). To consider our High-Yield Stocks Portfolio with Recent Yields of 18.5%, 8.6%, 10.6%, 26%, 6.7%, 8%, 10.6%, 14.9%, 10% and 15.6% when added to the portfolio; go to www.deepcaster.com and click on 'High Yield Portfolio'. There is great Profit Potential and Income in our Precious Metal and High Yield Portfolio selections. For example, Deepcaster recently recommended taking profits on One Premium Gold Miner and on two tranches of a Blue Chip Agricultural Stock as follows: 56% Profit on Premium Gold Miner on June 1, 2012 after just 2 days (i.e., about 10,100% annualized!) 87% Profit on Agricultural Blue Chip (Tr. 2) on April 23, 2012 after just 208 days (i.e., about 152% profit annualized on the remaining half of the original position) |
| Butler: U.S. government has given JPMorgan the green light to manipulate the silver m Posted: 15 Jun 2012 01:24 AM PDT A Few Questions; One Answer Theodore Butler|June 15, 2012 - 9:09am Please read this article carefully because I'm disclosing for the first time that the U.S. government has given JPMorgan the green light to manipulate the silver market. This fact explains the shenanigans in the silver market. It answers all the questions and exposes this tawdry affair for all to see. The scandal recently became more outrageous. The June Bank Participation Report, as of Tuesday, June 5, along with the COT confirmed that JPMorgan's silver short position has increased by at least 5,000 contracts in the past two reporting weeks. That is the equivalent of 25 million ounces of silver, truly an enormous amount in a two week period and about equal to all the silver produced and consumed in the world in the same period. I calculate JPMorgan's net short position in COMEX silver futures to be between 16,000 and 17,000 contracts. JPMorgan has been the sole net commercial silver short seller over the past two weeks. That is the clearest proof yet of manipulation. A market dominated by one buyer or seller is the ultimate definition of manipulation. Had JPMorgan not sold short 5,000 or more net additional contracts in COMEX silver over the past two weeks, the price of silver would have climbed even higher. Why? Because without JPMorgan selling, someone else would have had to sell in their place. Those sellers would have demanded a higher price. Furthermore, JPM's short position alone equals the entire 16,500 contract total net commercial short position in COMEX silver. In other words, if JPMorgan did not hold a 16,000 to 17,000 contact net short position, there would be no commercial net short position at all. The additional proof of silver manipulation includes the two massive price takedowns of last year, when the silver price fell more than 30% in a matter of days, benefitting JPMorgan more than any other trader. How can I continue to get away with accusing JPMorgan, arguably the most powerful bank in the US, of the most serious market crime possible and get no reaction from them? An objective reading of the past four years, since the time I first publicly identified JPMorgan as the big silver short, has resulted in the bank being universally recognized on the Internet as the big silver crook. The reputation of a systemically important financial institution is always of prime concern from the board of director and senior management level on down. Why have I never been threatened by them? The same question comes to mind when applied to the CME Group, owner and operator of the COMEX, where the silver manipulation is centered. The allegations that the CME is aiding and abetting in the silver manipulation are serious because the CME has been officially designated as a self-regulatory organization (SRO), meaning they have a legal obligation to prevent any attempt at manipulation in their markets. Like JPM, the CME is tough as nails and, presumably, could step on me should they choose to. (Yes, I send everything I write to JPM, the CME and the CFTC). Unlike JPMorgan and the CME, the Commodity Futures Trading Commission (CFTC) has not remained completely silent. The agency has initiated a number of reviews and investigations into allegations of manipulation in silver over the years (at my prodding), including a current Enforcement Division investigation, now approaching the four-year mark. The allegations of a silver manipulation were always credible, since they were based upon data from the agency itself and compared to how the Commission reacted strongly to past instances of concentration. The CFTC had to at least go through the motions of pretending to care. After all, many thousands of silver investors have consistently petitioned the agency on this matter over the years. It's been all talk and no action from the Commission when it comes to the silver manipulation. I can't tell you how many times I have asked myself after I have just explained another undeniable proof of silver manipulation, "why can't these regulators see this?" Why is the Commission conducting an expensive and formal silver investigation in the first place, when all it has to do is explain why a US bank holding a silver short position equal to 25% to 30% of both the paper and physical total world market wouldn't be manipulative to the price (in and of itself)? To this day, I have been baffled by how CFTC chairman Gary Gensler can preach the Holy Gospel of true regulatory reform of transparency, position limits and no concentration, while ignoring the clear evidence of manipulation in silver. I think what has caused his and the agency's failure to terminate a highly-visible silver manipulation has nothing to do with a lack of understanding of the silver manipulation. It took me a while to figure it out, but better late than never. The answer to all the above questions lies with the President's Working Group on Financial Markets. Largely in response to the great stock market crash in October, 1987, President Ronald Reagan signed an Executive Order in 1988 creating the Working Group to prevent a recurrence of a market crash. http://www.archives.gov/federal-regi...der/12631.html There are four members in the Working Group; the Federal Reserve Chairman, the Treasury Secretary, the Chairman of the Securities and Exchange Commission and the Chairman of the CFTC. The Treasury Secretary is the Chairman of the Working Group. The purpose of the group is to promote market stability and prevent disorderliness by working with the exchanges and major market participants in times of stress. Such a time for the financial markets existed in March 2008, when the investment bank Bear Stearns failed and, undoubtedly, the Working Group was heavily involved. The Group, along with exchanges and major market participants, oversaw the transfer of Bear Stearns' giant short positions to JPMorgan, in the process indemnifying JPM from any concerns of dominance and overt control of silver and gold prices. As a result, JPMorgan orchestrated (and was the biggest beneficiary) the more than 50 % decline in silver prices into late 2008 with the Working Group's permission. Things then quieted down in silver until the fall of 2010, when prices started to make an historic move into the late-April 2011 price high near $50. At that point, JPMorgan's giant short position began to hurt and it moved to cover some of the silver shorts into the very top. At that point, it looked like JPMorgan would get crushed by the physical silver shortage and the growing losses on their short positions. Instead, JPM appealed to the Working Group for relief and, working with them and the CME, JPM caused the silver market to crash, starting on Sunday night, May 1. Later, the Working Group teamed with JPMorgan and the CME to smash prices by 35% in 3 days in late September 2011. The President's Working Group on Financial Markets answers all my questions. It explains why JPMorgan and the CME remain silent about allegations of manipulation. They have been given legal cover by the Working Group. This also explains why the CFTC says they are conscientiously investigating silver when it is clear they are not. The agency can't come out and disclose silver was smashed with the full knowledge of the Working Group, so it pretends to go through the motions of investigating. What is going through Gary Gensler's mind? Is he not tormented by the blatant silver manipulation which runs contrary to all his public utterances? Commodity law is being broken. If my analysis is correct, what does this mean for silver from here? It will prove to be wildly bullish for the price; maybe not immediately, but on a long term basis. It sets the stage for the really big move in silver. This overt government interference in the silver market will boomerang at some point, just as every attempt at artificial price setting has failed. Just let the word start to spread about Working Group involvement in causing the price of silver to fall and the natural reaction by the world's investors will be to take advantage of the bargain created. This is an attempt by the government to influence the price of silver lower by favoring the paper short sellers and not by dumping physical silver on the market. That's because neither the US Government, nor any other world government has any physical silver to dump. All the Working Group can do is aid the paper silver short sellers by permitting vicious price sell-offs designed to scare existing holders. There is an easy way around that scam and that is buying real silver, not the junk represented by COMEX paper contracts. If, as and when the role of the Working Group in the silver manipulation becomes known, the best reason yet for buying silver will come into focus. I know that many have long suspected that some type of government involvement was present in gold and silver. But rarely have those suspicions been as clearly documented as they are now in silver. Questions about a silver investigation that never ends, or price moves beyond reason or historical precedent, or why the nation's most important bank and exchange are up to their eyeballs in the silver manipulation have been explained by the Working Group. Too bad the Working Group took the side of a few short manipulators and not the many silver investors and producers of the world. No doubt someone has sold a bill of goods to the regulators, falsely convincing them that terrible things will happen financially should silver explode to its true market value. Well guess what? The rotten state of world finances has nothing to do with the price of silver currently, nor will it in the future. Ted Butler June 15, 2012 http://www.silverseek.com/commentary...ons-one-answer |
| Gold Will Be Top Performer in 2012 - UBS Poll Of 8 Trillion USD Official Sector Posted: 15 Jun 2012 01:10 AM PDT gold.ie |
| Bob Hoye on why gold miners are winners during deflation Posted: 15 Jun 2012 12:30 AM PDT Market historian, geologist and Pivotal Events author Bob Hoye, talks to the GoldMoney Foundation's Dominic Frisby about the real price of gold in times of post-bubble deleveraging, and the ... This posting includes an audio/video/photo media file: Download Now |
| Gold hedging now just for project finance – GFMS Posted: 15 Jun 2012 12:08 AM PDT
from mineweb.com: The global producer hedge book declined again during the first quarter by 0.08 million ounces or three tonnes, leaving the outstanding producer hedge book at 5.07 million ounces or 158 tonnes. Keep on reading @ mineweb.com |
| Juggling knives to entertain junior financing markets Posted: 15 Jun 2012 12:07 AM PDT
from mineweb.com: We all know juniors have not fared well over the past year especially, except for a quick month-long run up preceding PDAC earlier this year. Equity financings have been smaller and come with thornier terms, particularly for early-stage juniors. Oreninc, which tracks financings, has noted that over the past year deal-size has slumped for smaller gold juniors and meanwhile flow-through financings, where monies have strings attached to specific exploration endeavours, have surged. Darrell Rader, president and CEO of Minaurum Gold and director/co-founder of Defiance Silver, recently likened getting equity financing to "trying to catch a falling knife." In his estimation, even if brokers promise much, they can deliver little as markets remain relatively uninterested in early-stage exploration stories. This is not to suggest Rader's hand is letting blood. He has had some recent success at Minaurum. But his is a potent description with which I am sure many junior managers and directors who have hit the road to sell themselves recently would agree. Keep on reading @ mineweb.com |
| Gold:silver ratio path not necessarily bullish for silver investors Posted: 15 Jun 2012 12:04 AM PDT
from mineweb.com: Much is made by commentators of the historical gold:silver ratio (GSR) being around 16:1, while the current ratio is more like 55:1, with the implication being that silver will return to its historical ratio to gold. If this were to happen overnight it would put the current silver price at a little over $100 an ounce – in the writer's view this won't happen, even in the long term, although there is definitely room for silver to appreciate more than gold in percentage terms in the days, months and years ahead, particularly if the gold price makes a rapid climb towards the $2,000 level which many do expect. Keep on reading @ mineweb.com |
| Posted: 15 Jun 2012 12:01 AM PDT The final session of this week opened in New York this morning with an equal lack of directional conviction in precious metals. Gold fell $3 to the $1,620 mark while silver was off by 6 pennies at $28.58 the ounce. |
| Ned Schmidt: No Hard Landing in China−Wall Street Can’t See Forest for the Trees Posted: 14 Jun 2012 11:52 PM PDT
from financialsense.com: Jim is pleased to welcome back Ned Schmidt, Publisher of The Agri-Food Value View Report. Ned doesn't believe China will have a hard landing as so many Wall Street analysts seem to believe. He also notes that McDonald's in China is planning to hire 70,000 workers and open 2,000 retail stores in the next few years. He also discusses the three core Ag stocks to own now, the price of US farmland, and why soybeans are the "new corn." Ned is a financial engineer specializing in global capital flows. He has been an advocate and practitioner of value oriented investing for thirty years. Ned began his investment career as a security analyst following the oil industry in the early 1970s. In the 1980s he was manager of an investment management group with discretionary responsibility for about $3.5 billion. During the past decade he also taught institutional investment management as The Roland George Visiting Professor of Applied Investments at Stetson University. He currently manages the Argyle Global Equity Appreciation Fund, an offshore mutual fund in the top quartile of global equity funds the past three years by Standard and Poors. Ned currently publishes THE VALUE VIEW GOLD REPORT, and writes for THE GLOBAL ADVISOR published in Toronto. Keep on reading @ financialsense.com |
| Bank of England's King Says Banks ‘Should Soon Start Easing’ Posted: 14 Jun 2012 11:52 PM PDT Spot market prices for gold bullion traded above $1,620 an ounce during Friday morning's London session – a gain of nearly 4% for the month so far. Stock markets and major government bonds rallied on prospects for further monetary stimulus. |
| Greece In Panic … Um, Wait! Posted: 14 Jun 2012 11:38 PM PDT
from testosteronepit.com: "If Greece doesn't get its next loan installment, the Eurozone will collapse the following day," scowled Alexis Tsipras, leader of the left-wing SYRIZA, on Thursday morning. By threatening the entire Eurozone with its demise, he ratcheted up the bailout extortion racket a few more notches. Yet, he and his party, if they were to win the June 17 election, promised to do precisely what would cause the bailout Troika to withhold payment: they'd repudiate the memorandum that the prior government had agreed to in order to get the second bailout. The "worthless piece of paper," as he described it, spelled out structural reforms, privatizations, budget cuts, minimum wage cuts, etc. that would make the Greek economy competitive again through internal devaluation. And it has been happening: draconian cuts in pay, benefits, and pensions; tax hikes, layoffs, spiking bankruptcies of small businesses; record unemployment; failing hospitals; pharmacies that refuse to sell medication to insured patients because they haven't been paid by the out-of-money state insurer. The middle-class standard of living—it had defied gravity ever since Greece joined the Eurozone—has been crushed. Read…. Everything is Getting Gummed up in Greece. Keep on reading @ testosteronepit.com |
| Gold Will Be Top Performer in 2012 – UBS Poll Of 8 Trillion USD Official Sector Posted: 14 Jun 2012 11:36 PM PDT
from goldcore.com: Today's AM fix was USD 1,622.25, EUR 1,284.44, and GBP1,043.58 per ounce. Silver is trading at $28.80/oz, €22.92/oz and £18.59/oz. Platinum is trading at $1,498.70/oz, palladium at $633.52/oz and rhodium at $1,215/oz. Gold edged up $5.50 or 0.34% yesterday in New York and closed at $1,624.30/oz. Gold traded sideways in Asia and is remaining in a narrow range holding above $1,620/oz in European trading. Gold climbed for its 6th session, its longest rally since October, on news that the US recovery shows signs of faltering. Gold has crept gradually higher again this week and appears to be consolidating on the sharp gains seen on June 1st when gold surged after the poor jobs number (see chart below). Keep on reading @ goldcore.com |
| Hong Kong Exchanges Bid for LME Beats out ICE Posted: 14 Jun 2012 11:36 PM PDT Hong Kong Exchanges & Clearing Ltd., host to the world's fifth-largest equity market, agreed to pay 1.39 billion pounds ($2.15 billion) for the London Metal Exchange, which handles more than 80 percent of global trade in industrial-metal futures. LME investors will get 107.60 pounds per ordinary share in cash, with a vote scheduled before the end of next month, the bourses said today. The stock traded at 4.925 pounds in July 2011, before the LME said it was considering bids. JPMorgan Chase & Co., Goldman Sachs Group Inc. and closely held Metdist Ltd. are the biggest LME shareholders. Hong Kong is the only place in China where investors can freely buy and sell shares in Industrial & Commercial Bank of China Ltd., the biggest lender by value, and PetroChina Co., Asia's largest company. The deal would be Hong Kong Exchanges' first overseas acquisition. The 135-year-old LME sets global benchmark prices for metals including copper, aluminum and nickel, of which China consumes more than any other nation. Its network of warehouses doesn't currently extend into the country. "Hong Kong Exchanges can be positive for LME if it can enhance its China exposure," said Jonas Kan, the head of Hong Kong research at Daiwa Capital Markets. "HKEx has a clearing business, visibility in listing for Chinese companies, and has experience working with regulators and authorities in China, which can add value to the LME." Morning Post Buying the LME would give Hong Kong Exchanges its first commodities contracts. Shares of Hong Kong Exchanges retreated 23 percent since the South China Morning Post reported its bid Feb. 18. That compares with a 15 percent drop in the Bloomberg World Exchanges Index. (BNWEXCH) Hong Kong Exchanges is paying with existing cash and new loans of at least 1.1 billion pounds. Shares of Hong Kong Exchanges declined 9.4 percent this year, valuing the company at $15.66 billion. Its net income fell 7 percent in the first quarter as listing fees declined. Hong Kong Exchanges recently lost its rank as the world's most valuable exchange company to CME Group Inc. The Chinese city's bourse wants to expand its product base as the pipeline of large initial public offerings from China dries up. Hong Kong has hosted $3.2 billion in IPOs this year, compared with $9.8 billion in the comparable period in 2011, according to data compiled by Bloomberg. LME Directors "I'm skeptical about the deal," said Andrew Sullivan, principal trader at Piper Jaffray Asia Securities Ltd. in Hong Kong. "They want to build up the bourse and expand into other areas. They're spending a lot of money at a time they're not getting an awful lot of income. You won't see the synergy straight away." The LME reported a 19 percent drop in net income to 7.68 million pounds last year, even as revenue climbed 21 percent to 61.2 million pounds. The offer will be recommended by all the LME's directors and sent to investors within 15 business days, with a meeting held before the end of July. It will need approval by more than 50 percent of LME shareholders, with the owners of at least 75 percent of the stock backing the move. The LME is owned by more than 60 of its 94 members. The takeover, which needs the approval of the U.K.'s Financial Services Authority, may be completed in the fourth quarter. Both sides agreed to break fees of 25 million pounds to 30 million pounds depending on the circumstances. Intercontinental Exchange Inc. (ICE), the second-largest U.S. futures market, and Hong Kong Exchanges were the two parties left in a bidding process announced by the LME in September. Claire Miller, a spokeswoman for ICE in London, declined to comment. The LME said today it would no longer be seeking competing takeover offers. Open Outcry Hong Kong Exchanges pledged to maintain the LME's contracts and ring, host to London's last open-outcry trading. The bourse will continue to be based in London and regulated by the FSA. The Asian exchange also said it would keep the LME's existing warehousing network, help the bourse develop its own clearing house and freeze trading fees until at least the start of 2015. The transaction will help the distribution of LME data across Asia and increase the number of customers in mainland China, the London bourse said. Hong Kong Exchanges will also support the expansion of the LME's warehousing network, which currently consists of more than 600 storage points. The LME's board after a takeover would consist of nine directors. Seven of those will have non-executive roles, with two of them chosen from Hong Kong Exchanges' management. The bourse handled a record $15.4 trillion of contracts last year. Hong Kong Exchanges is being advised by UBS AG and N.M. Rothschild & Sons Ltd. while the LME hired Moelis & Co. To contact the reporters on this story: Stanley James in Hong Kong at sjames8@bloomberg.net; Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net |
| Posted: 14 Jun 2012 11:31 PM PDT
from blog.milesfranklin.com: When I first invested in Precious Metals in May 2002, the first "guru" I latched onto was Richard Russell, a six-decade financial analyst from La Jolla, California. Aside from his message, I was drawn to his personality – a hard-nosed New Yorker that gained his wisdom through decades in the trenches, including those of World War II (actually, he was a fighter pilot). In fact, parts of my writing style – telling it like it is and adding a personal touch – were influenced by his work. In investments – and life in general – NOTHING is more powerful than an oft-repeated mantra, motto, or mission statement, and NO ONE understands this better than Richard Russell. When he's long gone fifty years from now – as likely myself as well – people will still remember his iconic "INFLATE OR DIE." I'm not sure EXACTLY when he created it, but it was pretty close to when I started reading him in mid-2002. Given the dollar was just in the process of topping at the time – and gold bottoming – it was one of the most prescient calls in financial market history. Obviously his words struck a chord, but back then, I had NO CLUE how bad things could become. Keep on reading @ blog.milesfranklin.com |
| $8 Trillion Official Sector Likes Bullion – UBS Poll Posted: 14 Jun 2012 11:30 PM PDT Gold climbed for its 6th session, its longest rally since October, on news that the US recovery shows signs of faltering. Gold has crept gradually higher again this week and appears to be consolidating on the sharp gains seen on June 1. |
| Federal Reserve Board Members Gave Their Own Banks $4 Trillion in Bailouts Posted: 14 Jun 2012 11:25 PM PDT
from allgov.com: Following the 2008 financial crisis, the Federal Reserve provided more than $4 trillion in near zero-interest loans and other help to banks and businesses whose executives also served as directors for the national bank. At least 18 current and former Fed regional bank directors had a direct stake in the trillion-dollar bailout given to teetering institutions, according to a report produced by the Government Accountability Office, but released by Senator Bernie Sanders (I-Vermont). "This report reveals the inherent conflicts of interest that exist at the Federal Reserve," Sanders said in a prepared statement. "At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks." Sanders wants to end the potential conflicts of interest that come with having bank executives serving on the Fed's boards. The senator introduced legislation in May that would prohibit banking industry and business executives from serving as directors of the Fed's 12 regional banks. Keep on reading @ allgov.com |
| Posted: 14 Jun 2012 11:09 PM PDT
from zerohedge.com: While by now virtually everyone around the world is intimately familiar with the nuances of Greek electoral law, knows the names of Greek politicians better than of those at home, and is all too aware of the broader media propaganda that unless Greece does as the banks demand the world as we know it will end, one aspect of the Greek collapse into hell has gotten lost: the complete failure of the Greek healthcare system. As the following Reuters report shows, regardless of the outcome on Sunday, it just may be too late to preserve the future of Greek sickcare, and with that, of the entire population: "The country's state hospitals are cutting off vital drugs, limiting non-urgent operations and rationing even basic medical materials for exhausted doctors as a combination of economic crisis and political stalemate strangle health funding. "It's a matter of life and death for us," said Persefoni Mitta, head of the cancer patients' association, recounting the dozens of calls she gets a day from patients needing pricey, hard-to-find cancer drugs. "Why are they depriving us of life?"" They are depriving of you of life, Persefoni, because in old times, when a given country was enslaved, there was a specific aggressor that the people could revolt against. Now, when the slave-master is debt, and thus one's own desire to live beyond their means, it is far more difficult to look in the mirror and to revolt against what one sees. Which is why, one day at a time, the Greek civilization will continue to suffer the terminal consequences of infinite debt serfdom, until finally, after two thousand years, it no longer exists. Keep on reading @ zerohedge.com |
| Gold Up Ahead of Key Government Events Next Week Posted: 14 Jun 2012 11:06 PM PDT Gold futures prices have gone up for five consecutive days, ending at $1,619.6 as of Thursday, up almost 1.8%. This morning in Asia, gold futures traded higher to $1,625. |
| Norcini – European Crisis & Bullion Banks Capping Gold Posted: 14 Jun 2012 10:53 PM PDT
from kingworldnews.com: With continued volatility in global markets, today King World News interviewed highly acclaimed trader Dan Norcini. Norcini told KWN that "gold was being capped by the bullion banks at that ($1,630) level." Norcini also discussed the crisis in Europe and how it is impacting key markets. But first, here is what he had to say about the recent action and what investors should expect going forward: "Markets are marking time ahead of the all-important Greek election this weekend. Investors and professionals are waiting to see if the euro, as we currently know it, is going to survive. There is still uncertainty surrounding whether Greece will leave the euro or not." Dan Norcini continues: "If the elections tilt a certain way and Greece leaves the euro, the question becomes, is this a harbinger of things to come? Meaning, will Spain and Italy also leave the euro. The other possibility is the Greeks vote to accept the austerity and stay in the euro. Obviously the markets are waiting to see what the outcome of that vote is. Keep on reading @ kingworldnews.com |
| UK Treasury and BoE liquor up banks again Posted: 14 Jun 2012 10:42 PM PDT
from goldmoney.com: Stocks and commodities have rallied this morning on rumours that central banks are about to launch a coordinated market intervention following Sunday's Greek election. Government bond yields have fallen (relief for the Spanish and Italians), while the euro reached a four-day high at $1.2685 earlier. Gold continues to face resistance at $1,630, while $28.50 still exerts a magnetic pull on silver. However, talk from G20 officials that "central banks are preparing for coordinated action to provide liquidity" in the event that the Greek election results upset the markets is raising bullish hopes. Meanwhile in the UK, bank shares have risen after Chancellor George Osborne announced last night that HM Treasury and the Bank of England are to start a new £140 billion lending programme in the next few weeks. In the words of BoE governor Mervyn King: "The Bank and the Treasury are working together on a "funding for lending" scheme that would provide funding to banks for an extended period of several years, at rates below current market rates and linked to the performance of banks in sustaining or expanding their lending to the UK non-financial sector during the present period of heightened uncertainty. The Bank would lend, as in its existing facilities, against a much greater value of collateral comprising loans to the real economy to protect taxpayers. But the long term nature of the lending and its pricing mean that the Bank could conduct such an operation only with the approval of the Government, as offered by the Chancellor earlier. So such a scheme would be a joint effort between Bank and Treasury." Keep on reading @ goldmoney.com |
| Silver Update: Super Mario – 6.14.12 Posted: 14 Jun 2012 10:42 PM PDT |
| Gold & Silver Market Morning, June 15 2012 Posted: 14 Jun 2012 09:00 PM PDT |
| John Hathaway: Gold, Gold Mining Shares, and QE: An Attempt to Answer Two Persistent Questions Posted: 14 Jun 2012 08:26 PM PDT ¤ Yesterday in Gold and SilverIt was another yawner of a trading session in the Far East and for most of the London trading day on Thursday. Of course that all changed at the Comex open, as gold tacked on a quick nine bucks, reaching its high of the day of $1,629.20 spot about 8:40 a.m. From there it got sold off a hair...and at the open of the New York equity markets, just like on Monday at 9:30 a.m. Eastern time, someone pulled the pin...and gold was down sixteen dollars in less than five minutes. The low for the day came at that instant...which was $1,608.80 spot. Gold recovered from there...and finished at $1,623.30 spot...up $5.70 on the day. Net volume was fairly hefty at 142,000 contracts.
Of course it was the silver price action that was the standout yesterday. After making numerous attempts to break through, and then stay above, the $29 spot price...it made one more attempt just minutes after 8:30 a.m. Eastern time in New York...and that attempt was met by another not-for-profit seller. Then at 9:30 a.m...the high-frequency traders showed up...and in less than five minutes, silver had crashed 80 cents...about 2.75%. And there wasn't a shred of news that would have caused that. A more blatant in-your-face market intervention can scarcely be imagined. The executives and boards of directors of all the silver companies that you own shares in will do what they usually do as they and their shareholders get raped...absolutely nothing. Not a single voice will be raised in our defense. The CME and the CFTC will do nothing as well. One has to wonder what sort of evidence the CFTC is looking for in this almost four year old silver manipulation investigation. I'm not sure either, but I think I found some yesterday. If Bart Chilton calls me, I'll point it out to him. The high price tick at 8:33 a.m. Eastern time was $29.13 spot...and the low price tick at 9:37 a.m. Eastern time was $28.13 spot Silver recovered a bit from there...but still closed down 22 cents at $28.64 spot. Net volume was in the neighbourhood of 34,000 contracts.
Platinum got hit for about ten bucks at the same 9:30 a.m. time...and the palladium price was barely affected. As a matter of fact, platinum finished up 1.85%...and palladium closed on Thursday up 2.27%. Gold was up 0.35%...and silver finished down 0.76%. This was a silver-specific bear raid yesterday. The dollar index, which opened around the 82.13 level, hit its zenith [82.28] at 10:00 a.m. in London and, like Wednesday, it was all down hill from there. The dollar index closed at 81.85...down about 28 basis points...and almost on its low of the day. It almost goes without saying that there was nothing in the dollar index activity that explained the waterfall decline in silver and gold at 9:30 a.m. Eastern time.
Of course the gold stocks got sold off the moment that the New York equity markets opened...and they hit their low just minutes after that. They recovered strongly from there before chopping around with the price of the metal itself...and the HUI managed to finish with another small gain, up 0.32% on the day.
The silver stocks finished mixed...but mostly down...and Nick Laird's Silver Sentiment Index closed up a tiny 0.16%, which isn't too shabby considering how badly the metal itself got hit.
(Click on image to enlarge) The CME's Daily Delivery Report showed that 15 gold and 4 silver contracts were posted for delivery on Monday. The GLD ETF showed that an authorized participant[s] added a fairly chunky 97,049 ounce of gold yesterday...and there were no reported changes in SLV. The U.S Mint reported selling 40,000 silver eagles. Over at the Comex-approved depositories on Wednesday, they reported receiving 1,225,308 troy ounces of silver...and shipped a very tiny 6,606 ounces out the door. The link to that action is here. I have a lot of stories for you again today...and I hope you have the time to at least skim the 'cut and paste' of each one. There are only a small handful that fall into the must read category. I suspect that the "stabilization of the financial markets" by the central banks on Sunday night will include the precious metals. Britain's Royal Mint to expand into the investment bullion market. Tony Robbins Bullish On Gold - Faber and Bass His Financial Gurus. Central banks ready to combat Greek market storm. ¤ Critical ReadsSubscribeNokia to Cut 10,000 Jobs as Elop Tries to Stanch LossesNokia Oyj reduced its earnings forecast for the second time this year and said it will cut as many as 10,000 more jobs and shut production and research sites in Chief Executive Officer Stephen Elop's biggest overhaul. The stock fell 18 percent to the lowest level since 1996, pushing Nokia's market value below $10 billion. As part of the changes, sites in Finland, Germany and Canada will be closed and executives Niklas Savander, Mary McDowell and Jerri DeVard will leave, Espoo, Finland-based Nokia said today. Elop, who took over as CEO in 2010, is reorganizing Nokia after market-share gains by Apple Inc.'s iPhone and Samsung Electronics Co. devices led to a slump in sales and four straight quarterly losses. The company risks going out of business in as little as two years unless it reduces expenses, said Alexander Peterc, an Exane BNP Paribas analyst in London. Scott Plushau sent me this Bloomberg story about fifteen minutes after I filed Thursday's column...so it had to wait until today. The link is here.  JPMorgan bets sent false signals to wider debt marketJPMorgan Chase & Co's disastrous bets on corporate debt may have caused unexpected collateral damage: erratic behavior in a barometer that measures the financial health of blue-chip U.S. companies. Those bets used Wall Street derivatives called credit default swaps. They are supposed to act like homeowners insurance, allowing bondholders, banks and hedge funds to buy protection against declines in the value of corporate debt, and ultimately protection against a default. In this case, though, they became more like the pawns in a battle between JPMorgan and hedge funds on the other side of its bet. This struggle so dominated a corner of the market that it sent false negative signals about the credit quality of some major companies whose underlying finances were largely unchanged, market experts said. This Reuters story was posted on their website just after midnight on Thursday...and is worth reading. I thank Andrew Holland for bringing it to our attention...and the link is here.  Americans Sees Biggest Home Equity Jump in 60 Years: MortgagesAmericans are digging themselves out of mortgage debt. Home equity in the first quarter rose to $6.7 trillion, the highest level since 2008, as homeowners taking advantage of record-low borrowing costs to refinance their loans brought cash to the table to pay down principal. The 7.3 percent gain was the biggest jump in more than 60 years, according to an analysis by Bloomberg of Federal Reserve data. It's the strongest sign yet that Americans' home-loan debt burden is beginning to ease after the record borrowing that created, and ultimately popped, the housing bubble, leaving almost a quarter of homeowners with mortgages owing more than their properties were worth, said Richard DeKaser, deputy chief economist at Parthenon Group LLC in Boston. Half the mortgages refinanced in the fourth quarter reduced loan size, a record, according to Freddie Mac, the government-owned mortgage buyer. "The willingness of homeowners to carry housing debt has been radically altered," said DeKaser, former chairman of the American Bankers Association's Economic Advisory Committee. "When the market was booming, a mortgage was used as a leveraging tool, and now it's seen as a risk." This is another Bloomberg story from yesterday...and the second in a row from Scott. The link is here.  Canadian housing market headed for a correction, BoC saysCanada's financial system remains highly vulnerable to a further deepening of the European debt crisis and to a correction in the housing market, which is showing some overvaluation, the Bank of Canada said on Thursday. In its semi-annual Financial System Review, the bank said that while Canada's financial system is still robust, the overall risks to it are high, at the second-highest of the four risk levels the bank has delineated. That level is the same as in December, but the bank noted that in the interval conditions in Europe had improved early this year but then deteriorated again. While households are not adding to their debt as fast as before, income growth is still not keeping up with debt accumulation. So the bank expects the household debt-to-income ratio to rise from the fourth quarter's 150.6 percent, a level that is already higher than in the United States and Britain. And you thought that us Canadians...and their banking system...were more prudent??? Wrong on both counts, dear reader! This story was posted in the Vancouver Sun yesterday...and I thank Roy Stephens for sharing it with us. The link is here.  ECB Tells Court Releasing Greek Swap Files Would Inflame MarketsThe European Central Bank said it can't release files showing how Greece may have used derivatives to hide its borrowings because disclosure could still inflame the crisis threatening the future of the single currency. Bloomberg News is suing the ECB to provide the documents under European Union freedom-of-information rules. The papers may help show the role EU authorities played in allowing Greece to mask its deficit for almost a decade before the nation's troubled finances necessitated a 240 billion-euro ($301 billion) bailout and the biggest debt restructuring in history. Disclosing the files when Bloomberg News first sought them in 2010 would have "fueled negative perceptions about Greece's ability to honor its debt," ECB lawyer Marta Lopez Torres said at a hearing of the European Union's General Court in Luxembourg today. "It's the same now with Spain" which "isn't able to borrow money," she said. "Markets are reacting in very volatile ways. It's affecting the euro economy." This Bloomberg story from early yesterday morning is courtesy of Washington state reader S.A...and the link is here.  Bank Of England Announces Big New Liquidity PlanThe Bank of England announced this afternoon that it would attempt to flood banks with cheap cash in order to stave off tensions in the interbank credit markets, according to Dow Jones. This report followed rumors of coordinated central bank action to bolster liquidity across the world, however the BOE's plan appears to be much more U.K.-centric. Speaking at a black tie dinner, BOE's Mervyn King and the Exchequer's George Osborne said they would initiate a two-pronged attempt to aid liquidity conditions. More money created out of thin air. This story was posted over at the businessinsider.com website yesterday afternoon Eastern time...and I thank Roy Stephens for sending it. The link is here.  Dutch Disease: Ambrose Evans PritchardAs if matters were not bad enough already in Euroland: Dutch retail sales collapsed by 11pc in April, even worse than the 9.7pc drop in Spain. Charles Dumas from Lombard says the results of Europe's "fiscal suicide pact" are becoming all too clear. This is not contagion from Greece or any such nonsense. It is the result of the eurozone's destructive policy mix. All three levers of EMU policy are set on contraction simultaneously. This longish piece [for Ambrose] was posted in The Telegraph yesterday...and is worth skimming. It's another offering from Roy Stephens...and the link is here.  Moody's Downgrades Five Dutch Banks By 1-2 NotchesWhile we await the Moody's downgrade of the Spanish banking system, which we can only attribute to a lack of outsourced Indian talent, since three banks are now rated higher than the sovereign, Moody's decided to give a little present to our Dutch readers by downgrading 5 of their biggest banks: Rabobank Nederland, (2 notches to A2) for ING Bank N.V., (2 notches to A2) for ABN AMRO Bank N.V. (2 notches to A2), and for LeasePlan Corporation N.V. (2 notches to Baa2). The long-term debt and deposit ratings for SNS Bank N.V. were downgraded by one notch to Baa2. And yes, this means that the US banks (looking at your Margin Stanley) are likely next. This zerohedge.com piece was posted on their website late Thursday evening...and I thank Roy Stephens for sending it. The link is here.  |
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