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XMFSinchiruna (27.12)

May 2008

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19

Moody's Reveals the Incompetence of its Own Ratings!!!

May 30, 2008 – Comments (3)

The implications of this article are far-reaching:  [more]

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28

Taking the Pulse of the CAPS Blogs: Commodities

May 29, 2008 – Comments (14)

Well, now you've gone and done it!  You're all far too talented for your own good!  The quality and liveliness of the debate within the CAPS blogs regarding commodities lately was too good to pass up.  Also, my strong belief that this blogosphere is the best-kept "secret" in the online financial universe gets me excited to bring as many new players into the fold as we can.  [more]

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38

Unbelieveable!! U.S. House of Reps passes bill authorizing Justice Dept to Sue OPEC!!

May 20, 2008 – Comments (28)

I can hardly contain my shock and consternation after reading the article below!  If they do actually get this past a presidential veto, as the voting margin suggests, and sign this into law, this measure will backfire on American interests with unbelieveable force.  First of all, while Bush was in Saudi Arabia requesting a production increase, various media outlets documented quite clearly that Saudi Arabia is extracting their oil at near-capacity rates.  I have not seen comparable information from other OPEC countries, but I have every reason to believe that these countries are taking advantage of present prices and pumping their way to profits.  [more]

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26

China looking to buy its way out of inflation and into opportunity - foreign oil, minerals, ag.

May 19, 2008 – Comments (12)

This short little article is packed with potential significance.  It's no secret that China has been looking to snatch up global supply of necessities through foreign acquisitions, as evidenced by Chinalco's recent stake in in Rio Tinto.  But to have the director of a key economic research facility publicly tout that strategy serves as a warning to U.S. policymakers pull dollar strength out of their magic hats.  When the dollar resumes its slide in the coming weeks, I think we'll see Chinese state corporations and their sovereign fund becoming more proactive in purchasing assets in the industries experiencing the greatest price hikes.  I wouldn't be surprised to see China press the envelope a little and go for some deals of a scale that will make the world nervous.  Perhaps an attempt on Rio Tinto outright?  or a BHP or a Vale?  This could get very interesting!  [more]

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17

Volcker warns of Consequences - 70s style inflation - Fed creators rolling in their graves

May 14, 2008 – Comments (4)

These comments on Capitol Hill today by Paul Volcker are as sobering as anything I've read to date.  In an understated but direct style characteristic of all Fed chairmen, he paints a portrait of severe hardship ahead as inflation continues, the economy tanks as confidence in Fed to fight inflation is lost (already on shaky ground), and the risk of a systemic dollar collapse.  Sounds like a walk on a tightrope... he says we need some dollar devaluation to stabilize the economy, but that we can't let it get out of hand.  So far, the Fed has been expert at the former.  :)  [more]

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20

Wag the Dog meets New Math

May 14, 2008 – Comments (5)

If you're looking for a window into the process by which you are repeatedly, intentionally, and systematically misled about the true inflation, then take a read below.  Every driver knows that gas has never been higher, and anyone who follows the energy markets knows gas is trailing well behind the rise of oil and so has further upside coming... in fact if gas remained at present prices the refiners would cease production altogether as margins go negative.  Thanks to their magic formulae, though, the gov't is able to declare to you that all is well... that there is no price inflation.  "Hey, gasoline prices actually declined last month, isn't that great?  What's that?  You saw them go up?  No you didn't.  We're the mathmagicians.  We'll tell you what you did or didn't see."  [more]

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16

Moody's FINALLY questions Aaa status for Ambac and MBIA

May 13, 2008 – Comments (1)

Moody's can no longer hide... setting the stage for downgrades of Ambac and MBIA.  This relates to my discussion of April 23.  These rating cuts will further injure the already non-existent marketability of mortage-backed assets, and strike fear at the heart of markets for the consumer credit-backed securities, municipal bond securities, etc.  Moody's is so late to the party on this one that they shouldn't even bother showing up... and their credibility for determining risk for investors is completely blown in my opinion.  Every individual must therefore make their own decisions regarding risk, and I suggest a most conservative approach for the de-leveraging that's yet to come.  [more]

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18

Peter Schiff - The Ticking Credit Card Time Bomb

May 12, 2008 – Comments (7)

As long as we keep piling on the credit, we're pouring salt into the economy's wounds.  Paulson and company will have to move to a far-away land to avoid the shame that he will endure for declaring the worst is over.  Hogwash!  I have been scouring every single tidbit of macroeconomic news to emerge over the past 24 months, and most of the news in the years preceding, and based on the entirety of the evidence I can unequivocally state that A.) the present financial crisis remains in its infancy; and B.) the market has not even come CLOSE to pricing in the reality of the present situation, let alone what is in the pipeline.  Seriously, folks, where is the logic in a 13,000 DOW given what we know?  The markets continue to take 'irrational exuberance' to new extremes.  [more]

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14

Fiscally Desperate - CA has relied on unscrupulous seizures of safe deposit boxes

May 12, 2008 – Comments (1)

I find this to be an amazing story.  Can you imagine if you were the bank customer who put an $82,000 string of pearls in your safe deposit box, only to have the State steal it from you and auction it off for under $2,000?!?  In the case outlined below, where the victim was a depositor, I find the bank to be totally implicated as well... for they were fully capable of taking the initiative to contact the customer.  That the State would lift no finger to contact the rightful ownder does not surprise me, but it's amazing to me how little the banks involved apparently care for their customers.  This is, to some extent, also a reflection of the trend away from community banking and into the domain of the mega-bank.  I remember knowing tellers by name and vice versa... not so much anymore.  We're just zeros and ones to them now... mostly zeros.  [more]

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27

Sinchiruna is now TMFSinchiruna. :)

May 06, 2008 – Comments (23)

Some of you may have already noticed that I've been writing articles for TMF for the past couple of months.  Beginning this month, it's official.  I'll be covering news primarily relating to the commodities space.  [more]

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16

Great Panther Shines with resent drill results. 1,300 g/t silver!!

May 05, 2008 – Comments (1)

With a one-two punch over the past week, Great Panther has issued 2 press releases revealing some very impressive test results from recent exploration.  This is my favorite silver producer, and in my opinion it is incredibly undervalued.  [more]

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13

Americans Selling Prized Possessions to Make Ends Meet - Households in Crisis!

May 02, 2008 – Comments (1)

I've been noticing this too.  On my drive to work, I've noticed a marked increase in the number of highly collectible cars for sale in driveways... beautifully restored specimens that you just know the owners hate to part with.  This is a sad development, and in my opinion, paints the picture of an American household with nowhere left to turn for capital... their debt has to be pretty close to being maxed out to start selling such items.  For some families, it might be a more proactive slimming dowbn of possessions for leaner times, but surely for some it's a move of desperation, and is one more marker in my opninion on the road from the R word to the D word.  [more]

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16

Sheetmetal Workers Informed Pension Fund in "Critical Status" - No Lump Payments!

May 01, 2008 – Comments (7)

In the first of what are anticipated to be a wave of pension failures of varying degrees and across a range of industries, the pension fund of the sheetmetal workers is in trouble.  Here is the text fron a letter sent to pension 'beneficiaries', dated April 16, 2008:  [more]

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17

Gulf States May End Dollar Peg - Say Goodbye to the short-lived USD Rally

May 01, 2008 – Comments (3)

As much as I would have loved for this little bump in the USDX from around 71 to near 73 to have marked a real reversal in the USD, the reality is unfortunately quite otherwise.  This was a headfake, and nothing more.  If the gulf states do what they are suggesting here, the dollar will accelerate its slide.  [more]

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