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XMFSinchiruna (27.35)

September 2008

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28

It's 12 O'Clock: Do You Know Where Your Money Is?

September 29, 2008 – Comments (4)

As Congress gets ready to vote for a monumental error that's helping to distract Americans from the several other equally damaging errors being committed each day that the dabte has rolled on, I am astounded that a most significant development slipped right beneath my radar two weeks ago. Read ths following article carefully... do you know where your money is? It appears 2 weeks ago the Fed eased restrictions that bar banks from using your savings account to fund investment banking activities.  Now they're free to take Aunt Edna's retirement savings and use it to cover their massive debts, while the taxpayer gets screwed to a whole new level. I am mad at myself for not catching this before, and I'm sorry for not bringing it to your attention earlier. Fools... our deposits are NOT safe.  [more]

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51

This is Everything I Have to Say About How This Crisis Came About!

September 26, 2008 – Comments (17)

Please please please read this article, and please please please share your thoughts and reactions here! If you like the analysis, please recommend the article at that link so more people will see it.  [more]

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30

Next in Line: FDIC needs $150 billion capital infusion for next wave of bank failures

September 25, 2008 – Comments (6)

07:47 FDIC may need $150 bln bailout as local bank failures mount - Bloomberg.com
Bloomberg.com reports FDIC insures all accounts up to $100,000 at its member banks, and it has never failed to honor a claim. The IndyMac debacle is taking a large bite out of FDIC reserves, and if scores of other banks fail in the year ahead, the fund will be depleted. Taxpayers will have to step in. The FDIC knows which banks are at risk; it has a watch list with 117 institutions. The agency won't disclose their names because doing so could cause depositors to panic and pull out all of their funds. It won't take many more failures before the FDIC itself runs out of money. The agency had $45.2 bln in its coffers as of June 30, far short of the $200 bln Whalen says it will need to pay claims by the end of next year. The U.S. Treasury will almost certainly come to the rescue. Emergency federal funding of the FDIC could swell the cost of government rescues of failed financial institutions to more than $400 bln -- not including the $700 bln general Wall Street bailout now under discussion in Congress. That number would be even higher if the government were on the hook for uninsured deposits -- which amount to $2.6 trillion, 37% of the total of $7 trillion held in the U.S. branches of all FDIC member banks... As recently as March, an internal FDIC memo estimated the cost to cover bank collapses in 2008 would be just $1 bln, dropping to $450 mln in 2009. It wasn't even close. The IndyMac failure alone, which happened four months after that memo was circulated, will cost the FDIC $8.9 bln -- and the bill for all 12 collapses will be about $11 bln, the FDIC says.   [more]

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29

SocGen Warns China's Economy Could Suffer Greatly

September 24, 2008 – Comments (3)

I find this article very hard to believe, but that doesn't stop me from posting it, because if they're right the entire outlook for most commodities (steel, aluminum, copper, coal, etc., etc.) could shift drastically. Note... this would not effect gold nor silver in my opinion, but every other commodity would suffer some panic seling I'm sure. The impact on oil... to hard to predict, but certainly would place downward pressure on prices in the near-term.  [more]

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19

A Fascinating Article: Gold, Silver, and the Last American Hero

September 24, 2008 – Comments (1)

From way back in March, when the financial world was a very different place... but still a very interesting commentary in my opinion. Thoughts?  [more]

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19

China Converting Incoming Dollars to Gold Reserves

September 24, 2008 – Comments (2)

Count the number of times this analyst mentions gold in this 3-minute interview. Do you think she's trying to tell us something? :) She mentions the Euro and Yen when further pressed by the interviewer, but starts off by mentioning just gold. 

http://www.cnbc.com/id/15840232?video=865880359

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27

A Buying Opportunity for Gold and Silver Bullion...

September 23, 2008 – Comments (10) | RELATED TICKERS: CEF , GTU

Well, Fools... they've done it again. The excellent managers up North at the Central Fund of Canada have announced another well-timed, non-dilutive share offering in order to purchase more bullion for the fund. Every time they do this, they A.) take more gold and silver off the physical market... in a way that's much more permanent than the inferior ETFs, B.) reduce their already-low expense ratio, and C.) remove a significant portion of the premium priced into shares by the market over the fund's net asset value... offering Fools like you a very attractive entry point. All the added premium tacked on to shares in recent days as investors flocked to the everything precious has essentially just been erased by the pricing of the share offering at $10.80. For going on four years now, I have attempted to accumulate CEF shares immediately following the announcement of each non-dilutive share offering, and it has worked out quite well. If I had cash on hand, I would be buying today. For anyone looking for exposure to gold and silver bullion, there really is no equal to CEF. If you hold SLV, GLV, IAU... etc... may I suggest making the switch?   [more]

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26

Yours truly in a tight situation. :)

September 22, 2008 – Comments (7)

Believe it or not... I'm on that sailboat when the picture was taken. Intense!

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21

When Trading Floors Lack Gold

September 22, 2008 – Comments (3)

A very interesting article from Vietnam on the disconnect between paper and physical precious metals prices, which I have been reporting on for many months now.  [more]

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A Simple View of What's Happening

September 22, 2008 – Comments (6)

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Congressional Leaders were Stunned by Warnings :)

September 19, 2008 – Comments (9)

I guess these Congressional leaders should have been reading the Motley Fool blogs... :)  [more]

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37

Please don't be fooled by this RTC nonsense... there's no silver bullet for the derivatives mess

September 18, 2008 – Comments (10)

What a ridiculous comparison!!!!!!!    [more]

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25

This is the biggest 1-day dollar gain for gold in modern history!! Up >$80!!!

September 17, 2008 – Comments (5)

1. SEC chose today to begin enforcing the rules regarding naked short selling, which immediately tore apart the investment banks' ability to manipulate the mining shares downward and forced them to begin to unwind their enormous short positions.  [more]

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26

Okay... the tally of FED expenditures this week is growing frighteningly fast

September 17, 2008 – Comments (7)

$140 billion in liquidity injections Monday and Tuesday  [more]

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20

One-two punch of global market panic and the drop in oil makes Russia a buy, IMHO.

September 16, 2008 – Comments (11)

If I had any cash in my account today, I'd be buying up a chunk of RSX, the Russia ETF.  [more]

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27

With all eyes on the major public institutions, Fed slips in some drastic measures!

September 15, 2008 – Comments (0)

Those who want to continue to grasp the whole of the macroeceonmic picture we face, must keep up to date on all of these FED actions, the various facilities, how they operate, etc. I find what the FED did this weekend, which might be seen as being in lieu of a Lehman bailout, quite extraordinary. The Term Securities Lending Facility has been increased to $200 billion and will now be held every week instead of every other week.  [more]

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29

China may cut its U.S. Dollar holdings...

September 12, 2008 – Comments (6)

It comes across the wires as a whisper, not even picked up by Reuters or AP... but this is an enormous development... and one that I've been anticipating for some time. Note they are not threatening to sell vast portions of their dollar assets, which would trigger the mother of all dollar drops, but rather stating that new reserve funds will likely focus on diversification into other currencies and non-agency debt. In other words... they're saying they will essentially cease to bankroll the irresponsible level of U.S. spending, and I believe the Treasury will be hard pressed to find enough buyers if China is not buying. This leads to the highly unenviable position where the Fed and the Treasury will have to cover each other (Treasury asks Fed to place some new ones and zeros in their computer, issues Treasuries to pay back the Fed, and then relies upon the Fed to purchase those Treasuries). If the rating agencies were actually doing their job, that would lead to a lowered credit rating for the dollar, which would lead more countries to start 'diversifying'.This does not paint a pretty picture for the U.S. Dollar!!  [more]

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26

Joy Global quarterly results provide excellent confirmation the commodity bull remains strong!!!

September 03, 2008 – Comments (8) | RELATED TICKERS: JOY

I have an article on these earnings coming out shortly, but the strength of the management's discussion regarding the overall health of global demand for commodities of all kinds across every geographic region is significant enough, given the current market sentiment, that I wanted to post the discussion here for Fools to consider carefully before they run for the exits. Here we have evidence of continued robust demand with a solid outlook for years to come, whereas those reports decrying the end of the line for the Chinese growth story, etc. have furnished me with no such evidence. Sure... the liquidation of a large hedge fund that was long commodities will create a big sell-off under any circumstances, but provided the underlying strength of global demands remains, such a sell-off presents nothing more than an opportunity.   [more]

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