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Fed. 14day RP + 8.00B [sofar
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Fed. 14day RP + 8.00B [sofar
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Ay Ay The Cap'm /
Fed.1day RP + 12.50B [net add +1.25B ]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Fed.1day RP + 12.50B [net add +1.25B ]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Precious Metals on Fire !
http://www.stevequayle.com/News.alert/07_Photo_of_Day/071107.photo.of.day.html
W@G2 QQQQ 11/14/07 for a 11/16/07 close
53.00 rayrohn
52.50 frenchee
51.80 bob3
50.74 The Cap'm
Nice call Chichi McClellan /
Fed. 1day RP + 11.25B [ all add]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Fed. 1day RP + 11.25B [ all add]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
still looking @ options /
W@G1 QQQQ 11/12/07 for a 11/14/07
51.00 rayrohn
50.76 bob3
50.63 frenchee
50.00 The Cap'm
U.S. Banks Reach Agreement on SIV Backup Fund, N.Y. Times Says
By Dan Hart
Nov. 11 (Bloomberg) -- Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., the three biggest U.S. banks, agreed on the structure of a fund of at least $75 billion intended to help calm credit markets, the New York Times reported, citing an unidentified person involved in the talks.
The proposed fund could begin operating by the end of December, the newspaper said, citing the unidentified person. The banks may begin asking about 60 financial institutions to contribute money as soon as Nov. 16 or early next week, the newspaper said, citing the person.
The plan requires approval by the major credit-rating companies, and the banks are still negotiating a fee structure of between 75 to 100 basis points, the Times said. The agreement on a simpler fund structure, reached late Nov. 9, concluded almost two months of negotiations, the Times reported.
The fund won't require structured-investment vehicles, known as SIVs, to obtain approval of at least 75 percent of investors if they want to participate, and the fund won't distinguish between the risk levels of different SIV assets, the newspaper said.
To contact the reporter on this story: Dan Hart in Washington at dahart@bloomberg.net .
Last Updated: November 11, 2007 11:07 EST
Petch: The New "GOLDilocks" Economy
by David Petch
November 11, 2007
This article was originally published for the benefit of subscribers on November 4, 2007.
The story of "Goldilocks and the Three Bears" initially began with a cute little girl having golden hair curiously walking into the house of the three bears and being scared out after a rude awakening. The new and revised economic version of "GOLDilocks and the Three Bears" is somewhat different. The modern version goes something like this: GOLDilocks (AKA gold) walks into the lair of the three bears (AKA Nasdaq, DOW and S&P 500 Indices in a bear market, yes, the pun is severely intended) and scares them out. The things that GOLDilocks "did" to metaphorically make them leave their lair are discussed below. The traditional view of the Goldilocks economy is being rewritten during these times.
The big news last weekend was CitiGroup temporarily withholding dividend payments and having an emergency meeting to determine how to correct or "cover up" any derivative problems. Up here in Canada, we might think we are immune to the derivative scandal, but the Ontario Teachers Pension Fund, the Quebec Pension fund (others I have not been able to find much more information about) and some Canadian banks such as BMO have some involvement in the bad credit many US banks spread around the globe. BMO is reported to have the largest exposure to the US SIV market than any other Canadian bank. Apparently, BMO raised 22 billion in August to strengthen their balance sheet in the event that any "problem" may arise. It appears that Canadian banks are much more conservative than the US banks south of the border that would grant loans to immigrant workers who lied about their income. Granted, there will be some pain, but the solvency of banks up here in the Great White North are likely to be well ahead of the curve with respect to many US banks that are set to implode.
More...http://www.safehaven.com/article-8801.htm
Petch: The New "GOLDilocks" Economy
by David Petch
November 11, 2007
This article was originally published for the benefit of subscribers on November 4, 2007.
The story of "Goldilocks and the Three Bears" initially began with a cute little girl having golden hair curiously walking into the house of the three bears and being scared out after a rude awakening. The new and revised economic version of "GOLDilocks and the Three Bears" is somewhat different. The modern version goes something like this: GOLDilocks (AKA gold) walks into the lair of the three bears (AKA Nasdaq, DOW and S&P 500 Indices in a bear market, yes, the pun is severely intended) and scares them out. The things that GOLDilocks "did" to metaphorically make them leave their lair are discussed below. The traditional view of the Goldilocks economy is being rewritten during these times.
The big news last weekend was CitiGroup temporarily withholding dividend payments and having an emergency meeting to determine how to correct or "cover up" any derivative problems. Up here in Canada, we might think we are immune to the derivative scandal, but the Ontario Teachers Pension Fund, the Quebec Pension fund (others I have not been able to find much more information about) and some Canadian banks such as BMO have some involvement in the bad credit many US banks spread around the globe. BMO is reported to have the largest exposure to the US SIV market than any other Canadian bank. Apparently, BMO raised 22 billion in August to strengthen their balance sheet in the event that any "problem" may arise. It appears that Canadian banks are much more conservative than the US banks south of the border that would grant loans to immigrant workers who lied about their income. Granted, there will be some pain, but the solvency of banks up here in the Great White North are likely to be well ahead of the curve with respect to many US banks that are set to implode.
More...http://www.safehaven.com/article-8801.htm
Chapman: Gold, Silver, Economy & More
by Bob Chapman
The International Forecaster
Sunday, 11 November 2007
US MARKETS
You would not think so by listening to all the lies and deceit but Citigroup is fighting to stay solvent. Their level 3 assets are almost totally illiquid and they do not know what they are worth. In all probability some $0.25 on the dollar on average. We might add here that thousands of the institutions worldwide are in the same situation and we won’t see the final damage reports for as long as another year. This is the worst financial crisis since the 1930s. They have stated their total liabilities at the 3 level were $40.36 billion, which was revised to $134.8 billion, but these are hedged positions. We do not know what the hedges are nor do we know how solvent the sellers of these hedges are. As we explained before many derivative writers have no collateral assets to cover the contracts they have sold. What is disturbing, counter to this fairly opaque announcement by Citi is, that the CFO of Citigroup said the market simply was not there. In other words, there were few if any buyers for level 3 junk bonds and that the market to hedge the CDO book was not there. That means Citi had few if any hedges in place. That said the CFO then said Citi might liquidate CDO’s if market prices come back. Sell to whom? How can CDO’s rally if there are few or no buyers? As we reported in the last two issues if hedge derivatives do exist, are they with Ambac or MBIA? If they are they may be uncollectible, because both they and the other bond insurers may go under.
This dilemma is proof that financial engineering doesn’t work. These engineers have designed securities and derivatives that do not work. As we explained in 1998 everybody uses the same mathematical models and when these models have to deal with excess volatility they collapse and they all collapse together. Being able to define probability is one matter but making it work under all circumstances is impossible. That is because investing cannot be defined by mathematical formula, because it is an art form. In the final analysis these formulas do not work and the carnage that follows is terrible. We are in the middle of such a situation presently and it will get far worse before it gets better, as all of these black box players try to escape simultaneously.
Citicorp like others fell victim to believing their own lies. Like valuing assets based on what they knew were a false premise. In collusion with the rating companies they rated BBB bonds AAA. Then when valuing their bonds for sale and their inventory by marking to model, which was pure fantasy, they knew at sometime in the future the scam would unravel. They just couldn’t lay off the toxic garbage fast enough. For three years firms like Citi perpetuated a myth - a fraud in evaluating its toxic bonds and inventory therein. They also engaged in fraud with the rating services. Citi and many others refrained from market sales in these securities because it would have exposed the entire scam. Banks, Wall Street, corporate America and our government simply refuse to tell the truth and this is the result.
Citi has $134 billion in CDO and ABS’s primarily backed by subprime toxic waste. They have $25 billion in commercial paper backed by toxic garbage. It should be noted Citi is watching a disintegrating housing market, which will depreciate these values further. Once they figure in the leverage you will find Citi is bankrupt. We expect the Fed will print the money and create credit to bail Citi out, and they will bail out all the biggies.
The dollar has fallen 36% under George and the neocons, or about 4.8% per year.
Total derivatives are now almost at $500 trillion. The current credit crisis has obscured this problem. The derivative positions will get larger and the implosion when it comes will be deafening. U.S. commercial banks increased their notional amount of derivatives in the 2nd quarter by $7.7 trillion to $152.5 trillion. These credit derivatives, which are the fastest growing derivative product, increasing 16% from the 1st quarter to $11.8 trillion. Credit default swaps, represent 98% of the total amount. That is up from 79% yoy. The five largest dealers hold 97% of the contracts. In descending order, HSBC, J.P. Morgan Chase, Citibank, Bank of America and Wachovia. This is what awaits us around the corner.
GOLD, SILVER, PLATINUM, PALLADIUM AND URANIUM
We hear a thundering in the distance. Could it be? Yes we can see them now; the gold bulls of the COMEX are now performing their version of the "Running of the Bulls" in Pamplona Spain, with the gold bears running in terror at the sheer mass and velocity of the stampede of raging gold bulls as they chase the bears through the pits of the exchange. Next stop, the New York Fed.
In unconfirmed reports, scientists have detected cataclysmic seismic activity with an epicenter near the gold and silver pits on the COMEX. The tremors are gaining in frequency and hot ash and toxic fumes are sputtering out of the mountain of shorts which has recently grown a massive cauldron of molten gold and silver lava, some of which has already boiled out of the cauldron and started running down the mountain. The new volcano is now threatening to blow like Mount St. Helens or Mount Vesuvius, and the bear village in the COMEX is at the foot of the volcano. Officials have been pleading with the bears to flee for their lives, but the stubborn bears refuse to leave and the National Guard may have to be called out to forcibly remove them for their own good. In a sign of protest that they will not be forced out of their homes, many of the residents of the bear community have begun to tie white headbands with red suns around their foreheads and have started to cut themselves, indicating that they might stay to the bitter end. Some have even noticed some of the bears clutching hand grenades to prevent the suffering and excruciating pain of being turned into Crispy Critters by gold and silver lava, or being trampled to death by a stampede of gold bulls. Officials are beside themselves with worry as the stubborn bears cling to their position, with some going even closer to the foot of the roiling mountain of shorts instead of fleeing in terror like any normal person would do. Officials believe that the hot vapors and toxic fumes may have made the bears a bit woozy, thereby clouding their better judgment, and are seeking a court order to remove the bears based on temporary insanity on account of the impact of all the toxic fumes on their brains. In true Tolkien style, the bulls have named the new volcano Mount Doom, although some have opted for Mount Bearkiller. The cauldron has been named the Cartel Cauldron in honor of the group that has suppressed and pressurized the contents of the volcano for two decades and caused the economic cataclysm that has triggered the current eruption.
Stay tuned, as the final eruption is imminent!
In another continuing report on the Financial Heavyweight Championship of the World sponsored by the COMEX, a representative of Citigroup, who shall remain nameless, is rumored to have bribed the timekeeper to ring the bell early for the end of the round, saving the Raving Reprobate from defeat at the last second while the referee was in mid count. The Reprobate had hit the mat with a resounding thud after receiving a jaw crushing right cross from the Barbaric Relic on Friday. Unfortunately for the Reprobate, who should have thrown in the towel, the Relic turned absolutely beastly about the latest Citigroup antic, and immediately went on the warpath in the next round. At the conclusion of the previous round that has been terminated prematurely by the Citigroup bribe, the Knight of Economic Reality put in a cameo appearance, flashing his silver Shield of Protective Derivatives and whirling his golden Sword of Financial Truth in front of an adoring audience. When the next round resumed, the Reprobate was bleary-eyed and dizzy, staggering like a newborn foal, trying to keep his feet much less deflect the blows of the now savage Relic, whose fighting tactics can now only be described as, well, most appropriately, "barbaric." After being brutally pounded in earlier rounds, the Relic has staged a brilliant comeback against overwhelming odds, and is now hitting the Reprobate with multiple jabs in such rapid succession that the scorers could not even count them properly. After one particularly well-landed left jab, the Reprobate's head snapped back and his bloody mouthpiece was ejected into the cheering crowd, which was screaming for blood. The Reprobate now has his back to the ropes as he is pummeled by the Relic, who has just wound up for the knockout blow! Stay tuned as the now one-sided action in the arena drives toward a stunning conclusion!
Things will never get more bullish for gold than they are now. Everyone is deathly afraid of the ongoing credit crunch, of the real estate implosion which is growing every day into a juggernaut of problems and of the ongoing thermonuclear meltdown of hundreds of trillions in derivatives, never mind the 400 billion in SIV's which are leveraged to the hilt. The Fed has abandoned the dollar with the agreement of the G-7 group, so the dollar will now become a carry trade currency like the yen and the Swiss franc as the downside is so great that everyone will borrow dollars, sell them for euros, buy German bunds or other more secure assets like Swiss franc denominated bonds. They will do this even though the returns are not quite as good yet as the returns for treasuries because the downside in the dollar will more than offset any miniscule negative return differentials which are quickly getting smaller anyway as the Fed continues to lower rates to bail out Wall Street. The returns from the destruction of the dollar could be stupendous for those who are short the dollar.
And do not think that banks will not come here to the US to borrow dollars, sell them for euros, invest them in the Euro Zone using fractional banking, and then wait for the dollar to plummet. This is how the elitists plan on bailing themselves out, and is the principal reason for the abandonment of the dollar. For US banks, profiting from the destruction of the dollar by using foreign subsidiaries and offshore accounts to hide what they are doing is downright treasonous, but hey, never let a little treason get in the way of fun and profits, especially when you control the whole legal, economic and political systems from soup to nuts. Hyper-stagflation is on its way, consumer spending is about to drop off a cliff, the stock market is beginning to look like it has breathed its last, we are in a recession and the dolts who run our government either are too stupid to know it or know about it and lie to cover it up. The bailouts will now accelerate to light speed, monetization of bonds will accelerate as the bailouts grow bigger and bigger and get dumped on the US public, and inflation will soon rule supreme worldwide and especially in the US, sending gold past the Einstein-DeSitter radius at the outermost bounds of the visible universe. We now predict five figure gold before this is all over!!!
http://news.goldseek.com/InternationalForecaster/1194813862.php
Chapman: Gold, Silver, Economy & More
by Bob Chapman
The International Forecaster
Sunday, 11 November 2007
US MARKETS
You would not think so by listening to all the lies and deceit but Citigroup is fighting to stay solvent. Their level 3 assets are almost totally illiquid and they do not know what they are worth. In all probability some $0.25 on the dollar on average. We might add here that thousands of the institutions worldwide are in the same situation and we won’t see the final damage reports for as long as another year. This is the worst financial crisis since the 1930s. They have stated their total liabilities at the 3 level were $40.36 billion, which was revised to $134.8 billion, but these are hedged positions. We do not know what the hedges are nor do we know how solvent the sellers of these hedges are. As we explained before many derivative writers have no collateral assets to cover the contracts they have sold. What is disturbing, counter to this fairly opaque announcement by Citi is, that the CFO of Citigroup said the market simply was not there. In other words, there were few if any buyers for level 3 junk bonds and that the market to hedge the CDO book was not there. That means Citi had few if any hedges in place. That said the CFO then said Citi might liquidate CDO’s if market prices come back. Sell to whom? How can CDO’s rally if there are few or no buyers? As we reported in the last two issues if hedge derivatives do exist, are they with Ambac or MBIA? If they are they may be uncollectible, because both they and the other bond insurers may go under.
This dilemma is proof that financial engineering doesn’t work. These engineers have designed securities and derivatives that do not work. As we explained in 1998 everybody uses the same mathematical models and when these models have to deal with excess volatility they collapse and they all collapse together. Being able to define probability is one matter but making it work under all circumstances is impossible. That is because investing cannot be defined by mathematical formula, because it is an art form. In the final analysis these formulas do not work and the carnage that follows is terrible. We are in the middle of such a situation presently and it will get far worse before it gets better, as all of these black box players try to escape simultaneously.
Citicorp like others fell victim to believing their own lies. Like valuing assets based on what they knew were a false premise. In collusion with the rating companies they rated BBB bonds AAA. Then when valuing their bonds for sale and their inventory by marking to model, which was pure fantasy, they knew at sometime in the future the scam would unravel. They just couldn’t lay off the toxic garbage fast enough. For three years firms like Citi perpetuated a myth - a fraud in evaluating its toxic bonds and inventory therein. They also engaged in fraud with the rating services. Citi and many others refrained from market sales in these securities because it would have exposed the entire scam. Banks, Wall Street, corporate America and our government simply refuse to tell the truth and this is the result.
Citi has $134 billion in CDO and ABS’s primarily backed by subprime toxic waste. They have $25 billion in commercial paper backed by toxic garbage. It should be noted Citi is watching a disintegrating housing market, which will depreciate these values further. Once they figure in the leverage you will find Citi is bankrupt. We expect the Fed will print the money and create credit to bail Citi out, and they will bail out all the biggies.
The dollar has fallen 36% under George and the neocons, or about 4.8% per year.
Total derivatives are now almost at $500 trillion. The current credit crisis has obscured this problem. The derivative positions will get larger and the implosion when it comes will be deafening. U.S. commercial banks increased their notional amount of derivatives in the 2nd quarter by $7.7 trillion to $152.5 trillion. These credit derivatives, which are the fastest growing derivative product, increasing 16% from the 1st quarter to $11.8 trillion. Credit default swaps, represent 98% of the total amount. That is up from 79% yoy. The five largest dealers hold 97% of the contracts. In descending order, HSBC, J.P. Morgan Chase, Citibank, Bank of America and Wachovia. This is what awaits us around the corner.
GOLD, SILVER, PLATINUM, PALLADIUM AND URANIUM
We hear a thundering in the distance. Could it be? Yes we can see them now; the gold bulls of the COMEX are now performing their version of the "Running of the Bulls" in Pamplona Spain, with the gold bears running in terror at the sheer mass and velocity of the stampede of raging gold bulls as they chase the bears through the pits of the exchange. Next stop, the New York Fed.
In unconfirmed reports, scientists have detected cataclysmic seismic activity with an epicenter near the gold and silver pits on the COMEX. The tremors are gaining in frequency and hot ash and toxic fumes are sputtering out of the mountain of shorts which has recently grown a massive cauldron of molten gold and silver lava, some of which has already boiled out of the cauldron and started running down the mountain. The new volcano is now threatening to blow like Mount St. Helens or Mount Vesuvius, and the bear village in the COMEX is at the foot of the volcano. Officials have been pleading with the bears to flee for their lives, but the stubborn bears refuse to leave and the National Guard may have to be called out to forcibly remove them for their own good. In a sign of protest that they will not be forced out of their homes, many of the residents of the bear community have begun to tie white headbands with red suns around their foreheads and have started to cut themselves, indicating that they might stay to the bitter end. Some have even noticed some of the bears clutching hand grenades to prevent the suffering and excruciating pain of being turned into Crispy Critters by gold and silver lava, or being trampled to death by a stampede of gold bulls. Officials are beside themselves with worry as the stubborn bears cling to their position, with some going even closer to the foot of the roiling mountain of shorts instead of fleeing in terror like any normal person would do. Officials believe that the hot vapors and toxic fumes may have made the bears a bit woozy, thereby clouding their better judgment, and are seeking a court order to remove the bears based on temporary insanity on account of the impact of all the toxic fumes on their brains. In true Tolkien style, the bulls have named the new volcano Mount Doom, although some have opted for Mount Bearkiller. The cauldron has been named the Cartel Cauldron in honor of the group that has suppressed and pressurized the contents of the volcano for two decades and caused the economic cataclysm that has triggered the current eruption.
Stay tuned, as the final eruption is imminent!
In another continuing report on the Financial Heavyweight Championship of the World sponsored by the COMEX, a representative of Citigroup, who shall remain nameless, is rumored to have bribed the timekeeper to ring the bell early for the end of the round, saving the Raving Reprobate from defeat at the last second while the referee was in mid count. The Reprobate had hit the mat with a resounding thud after receiving a jaw crushing right cross from the Barbaric Relic on Friday. Unfortunately for the Reprobate, who should have thrown in the towel, the Relic turned absolutely beastly about the latest Citigroup antic, and immediately went on the warpath in the next round. At the conclusion of the previous round that has been terminated prematurely by the Citigroup bribe, the Knight of Economic Reality put in a cameo appearance, flashing his silver Shield of Protective Derivatives and whirling his golden Sword of Financial Truth in front of an adoring audience. When the next round resumed, the Reprobate was bleary-eyed and dizzy, staggering like a newborn foal, trying to keep his feet much less deflect the blows of the now savage Relic, whose fighting tactics can now only be described as, well, most appropriately, "barbaric." After being brutally pounded in earlier rounds, the Relic has staged a brilliant comeback against overwhelming odds, and is now hitting the Reprobate with multiple jabs in such rapid succession that the scorers could not even count them properly. After one particularly well-landed left jab, the Reprobate's head snapped back and his bloody mouthpiece was ejected into the cheering crowd, which was screaming for blood. The Reprobate now has his back to the ropes as he is pummeled by the Relic, who has just wound up for the knockout blow! Stay tuned as the now one-sided action in the arena drives toward a stunning conclusion!
Things will never get more bullish for gold than they are now. Everyone is deathly afraid of the ongoing credit crunch, of the real estate implosion which is growing every day into a juggernaut of problems and of the ongoing thermonuclear meltdown of hundreds of trillions in derivatives, never mind the 400 billion in SIV's which are leveraged to the hilt. The Fed has abandoned the dollar with the agreement of the G-7 group, so the dollar will now become a carry trade currency like the yen and the Swiss franc as the downside is so great that everyone will borrow dollars, sell them for euros, buy German bunds or other more secure assets like Swiss franc denominated bonds. They will do this even though the returns are not quite as good yet as the returns for treasuries because the downside in the dollar will more than offset any miniscule negative return differentials which are quickly getting smaller anyway as the Fed continues to lower rates to bail out Wall Street. The returns from the destruction of the dollar could be stupendous for those who are short the dollar.
And do not think that banks will not come here to the US to borrow dollars, sell them for euros, invest them in the Euro Zone using fractional banking, and then wait for the dollar to plummet. This is how the elitists plan on bailing themselves out, and is the principal reason for the abandonment of the dollar. For US banks, profiting from the destruction of the dollar by using foreign subsidiaries and offshore accounts to hide what they are doing is downright treasonous, but hey, never let a little treason get in the way of fun and profits, especially when you control the whole legal, economic and political systems from soup to nuts. Hyper-stagflation is on its way, consumer spending is about to drop off a cliff, the stock market is beginning to look like it has breathed its last, we are in a recession and the dolts who run our government either are too stupid to know it or know about it and lie to cover it up. The bailouts will now accelerate to light speed, monetization of bonds will accelerate as the bailouts grow bigger and bigger and get dumped on the US public, and inflation will soon rule supreme worldwide and especially in the US, sending gold past the Einstein-DeSitter radius at the outermost bounds of the visible universe. We now predict five figure gold before this is all over!!!
http://news.goldseek.com/InternationalForecaster/1194813862.php
Mauldin: Credit Crisis to Credit Crunch
November 9, 2007
A Confidence Credit Crunch Credit Crisis
How Much is That Dog in Your Net Capitalization?
King Dollar Faces the Guillotine
The Euro-Yen Cross
The Consumer is Getting Tired
New York, Philadelphia, Switzerland and Phoenix
Just when it felt like it was safe to get back in the water, a second and potentially much meaner version of this summer's credit crisis has reappeared. This week we look at why there are more mortgage write downs coming (in a self-fulfilling prophecy) in the financial sector, how an obscure new accounting rule is shedding light on a lot of risk in the world's banking system, how this is all tied to the consumer and is part of the reason for the fall in the dollar. It's a complex world, and I am going to spend a considerable part of a beautiful Friday evening in Texas trying to make it simple for you, gentle reader. That's my job, and I love it. And since I can't think of my usual "but first" we'll jump right in.
I have written for some time that we are in a credit crisis brought on by a lack confidence which has the real possibility of devolving into a credit crunch which will make loans harder to get and has the potential to slow down the US economy, on top of a weakening consumer. Data released in the past few months, and again this week, have shown that banks and other lenders are tightening their standards for all sorts of loans. And it is not just that they are becoming more like an old-fashioned banker who actually wanted to know that he could get his money back. Their new found conservatism is being forced on them. But let's start at the beginning.
The Financial Accounting Standards Board (FASB) is the referee for accounting practices. They recently issued a new rule which will be implemented November 15. Essentially, Statement 157 requires a financial firm to divide its assets into three categories called simply enough, Level 1, Level 2 and Level 3.
http://www.safehaven.com/article-8797.htm
Ron 'Paul's personal financial disclosures reveal extensive private investments in gold and silver, through equities and warrants in companies including Newmont, IAM Gold, Barrick Gold, Golden Star Resources, Golden Cycle Gold Corp, Pan American Silver, Great Basin Gold, Eldorado Gold, Freeport McMoran Gold & Copper, Apollo Gold Corp and Placer Dome.[34]'
They need to add MMG to that list: http://www.opensecrets.org/pfds/pfd2006/N00005906_2006_Pres.pdf (page 5)
Most think of MMG as just a zinc junior, but Paul probably recognizes their huge silver upside, which IMO many more will soon.
Coutesy... Mr. Aloha @ SI
Ron 'Paul's personal financial disclosures reveal extensive private investments in gold and silver, through equities and warrants in companies including Newmont, IAM Gold, Barrick Gold, Golden Star Resources, Golden Cycle Gold Corp, Pan American Silver, Great Basin Gold, Eldorado Gold, Freeport McMoran Gold & Copper, Apollo Gold Corp and Placer Dome.[34]'
They need to add MMG to that list: http://www.opensecrets.org/pfds/pfd2006/N00005906_2006_Pres.pdf (page 5)
Most think of MMG as just a zinc junior, but Paul probably recognizes their huge silver upside, which IMO many more will soon.
Coutesy... Mr. Aloha @ SI
Don Coxe says: "...once you have systemic risk showing up – and it’s showing up big time – then you’re going to have all sorts of things starting to unravel."
====
Now I know that people say “Well the TIPS haven’t widened out that much”, indicating that investors don’t think there’s that much inflation. But that’s a small market, not big enough when we’re dealing with the whole global financial system now, which is in what I call a 'death grip' with the Dollar.
Because as the Dollar goes down it means the inflows to support all these various kinds of various instruments slow down or get choked off. And you’re always at the most risk, for a financial system, when your currency is in trouble.
And then when you have a current account deficit of two billion dollars a day, which means you’ve got to have that much in, to protect your, keep your currency from going down further...these interlocking forces become mutually reinforcing. Which means the value of credit in the US financial system which is lower-quality bonds, lower-quality bank loans, lower-quality municipals, they go down.
And the Dollar keeps going down. And as the Dollar goes down more and more people get terrified about exposure to the US and they sell if they can get bids, but what they don’t do is put any new money in.
That’s why if you add these together, it’s one of the reasons why we have been such enthusiasts about gold.
Because gold is that rare asset where it’s nobody’s liability.
And what you don’t want right now is a liability of anything other than true Triple AAA issuers, of which in the corporate sector there’s only about two or three and governments that you can trust. I mean, it’s a situation where all of these things coming together…and I’m sorry to keep ladling all these on to you because some of you, your eyes may be glazing over, but I want you to understand that this is not just a risk confined to Bear Stearns and Merrill Lynch and Citigroup. And that these things can gradually be papered over and that the economy’s in pretty good shape so therefore we’re going to come through all of this. We probably will.
But what it does mean is that we are in the liquidation mode and where those people who have savings are not likely to add more money into what they already feel they are overinvested. Most global investors are still overweight the Dollar relative to their own portfolios.
And so we’ve got a process…once you destroy faith in the system like this and in the currency at the same time, then investors who don’t have to be in Dollar securities...are going to exit.
So gold is no longer something where you can put a cap to it.
And that also applies to the Canadian Dollar. And to the Euro. And to the Yen. It simply means that you go in to assets where - although they’ve gone up a long way - that you have some confidence they’re not exposed to systemic risk the that anything denominated in Dollars is.
That’s why I don’t think anybody should be committing new money into the stock market. And you can’t just say it’s the US stock market, because Wall Street’s problems become the world’s problems. And that’s why we still say that you own the commodity stocks. Because they are tied directly to the cash flow of the global economy as opposed to somebody else’s balance sheet
Courtesy... TheSlowLane @ SI
Don Coxe: Fridays weekly audio program.
http://events.startcast.com/events/199/B0003/#
Don Coxe says: "...once you have systemic risk showing up – and it’s showing up big time – then you’re going to have all sorts of things starting to unravel."
====
Now I know that people say “Well the TIPS haven’t widened out that much”, indicating that investors don’t think there’s that much inflation. But that’s a small market, not big enough when we’re dealing with the whole global financial system now, which is in what I call a 'death grip' with the Dollar.
Because as the Dollar goes down it means the inflows to support all these various kinds of various instruments slow down or get choked off. And you’re always at the most risk, for a financial system, when your currency is in trouble.
And then when you have a current account deficit of two billion dollars a day, which means you’ve got to have that much in, to protect your, keep your currency from going down further...these interlocking forces become mutually reinforcing. Which means the value of credit in the US financial system which is lower-quality bonds, lower-quality bank loans, lower-quality municipals, they go down.
And the Dollar keeps going down. And as the Dollar goes down more and more people get terrified about exposure to the US and they sell if they can get bids, but what they don’t do is put any new money in.
That’s why if you add these together, it’s one of the reasons why we have been such enthusiasts about gold.
Because gold is that rare asset where it’s nobody’s liability.
And what you don’t want right now is a liability of anything other than true Triple AAA issuers, of which in the corporate sector there’s only about two or three and governments that you can trust. I mean, it’s a situation where all of these things coming together…and I’m sorry to keep ladling all these on to you because some of you, your eyes may be glazing over, but I want you to understand that this is not just a risk confined to Bear Stearns and Merrill Lynch and Citigroup. And that these things can gradually be papered over and that the economy’s in pretty good shape so therefore we’re going to come through all of this. We probably will.
But what it does mean is that we are in the liquidation mode and where those people who have savings are not likely to add more money into what they already feel they are overinvested. Most global investors are still overweight the Dollar relative to their own portfolios.
And so we’ve got a process…once you destroy faith in the system like this and in the currency at the same time, then investors who don’t have to be in Dollar securities...are going to exit.
So gold is no longer something where you can put a cap to it.
And that also applies to the Canadian Dollar. And to the Euro. And to the Yen. It simply means that you go in to assets where - although they’ve gone up a long way - that you have some confidence they’re not exposed to systemic risk the that anything denominated in Dollars is.
That’s why I don’t think anybody should be committing new money into the stock market. And you can’t just say it’s the US stock market, because Wall Street’s problems become the world’s problems. And that’s why we still say that you own the commodity stocks. Because they are tied directly to the cash flow of the global economy as opposed to somebody else’s balance sheet
Courtesy... TheSlowLane @ SI
Don Coxe: Fridays weekly audio program.
http://events.startcast.com/events/199/B0003/#
Bullwinkle has a nice weekly earnings list:
#msg-24441838
Futures (2) + World Indices
http://www.cme.com/dta/del/globex.html
http://money.cnn.com/data/premarket/
World Indices (2) Mini Charts
Updates every 60sec ~ Watch the dates!!
http://www.wwfn.com/commentary/oscharts.html
http://www.allstocks.com/markets/World_Charts/Asian_Stock_Markets/asian_stock_markets.html
Real-Time Forex Streamers (2)
http://www.netdania.com/QuoteList.asp
http://www.forex-markets.com/quotes.htm
Fed. Ops: 31.25B Matures this week.
Wed: 3.25B 5day
Thur.
(1) 8.00B 14day
(2) 20.00B 7day
Float: 40.25B
==================================================
Temp Ops:
Perm Ops:
=========================================================
Public Debt:
Limit ~ $9,815. T
11/08 ~ $9,111. T * Significant Increase
Fed. Ops: 31.25B Matures this week.
Wed: 3.25B 5day
Thur.
(1) 8.00B 14day
(2) 20.00B 7day
Float: 40.25B
==================================================
Temp Ops:
Perm Ops:
=========================================================
Public Debt:
Limit ~ $9,815. T
11/08 ~ $9,111. T * Significant Increase
frenchee, Grats W@G a double /
Good board, thax, thought l was alone WWAT /
Fed. 5day RP + 3.25B [ net Drain -0.50B ]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Fed. 5day RP + 3.25B [ net Drain -0.50B ]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Goldcorp Reports Third Quarter Earnings
Friday November 9, 8:00 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Nov 9, 2007 -- All Amounts in $US unless stated otherwise.
GOLDCORP INC. (Toronto:G.TO - News)(NYSE:GG - News) today reported adjusted net earnings of $82.3 million(1), or $0.12 per share, for the quarter ended September 30, 2007.
ADVERTISEMENT
Third Quarter 2007 Highlights:
- Gold production increases 28% to 556,200 ounces(2)
- Gold sales increase 29% to 537,200 ounces(2)
- Realized gold price of $685 per ounce
- Total cash costs of $140 per gold ounce(2,3), net of by-product credits
- Strong margin growth to $545 per gold ounce on a by-product basis
- Net earnings of $75.8 million or $0.10 per share
- Operating cash flow of $208.6 million (before working capital adjustments)(4)
- Dividends of $31.7 million paid during the quarter
- Agreement to acquire 100% ownership of key Canadian gold mines
- Reaffirms 2007 production guidance of 2.2 to 2.3 million ounces of gold at a total cash cost of $150 per ounce
"During the third quarter, Goldcorp grew gold production at much lower cash costs than industry averages," said Kevin McArthur, President and Chief Executive Officer of Goldcorp. "We enjoy the best gross margin in the senior space, enabling shareholders to participate fully in the continued strong market for gold. Maintaining this margin advantage and growing production by over 50% in the next few years remains our primary focus.
"Our operational and corporate initiatives are bearing fruit in this year of consolidation and transition. We have demonstrated quarter-over-quarter improvements, although these were somewhat diluted in the third quarter by storm-related power outages at Red Lake and a late concentrate shipment at Alumbrera. These effects are not expected in the fourth quarter and beyond. In fact, planned completion of the Red Lake expansion and the start-up at commercial operations at Los Filos in Mexico will lay the groundwork for a strong 2008."
Financial Review
Gold sales in the third quarter increased to 537,200 ounces at a total cash cost of $140 per ounce, compared with 421,400 ounces at a total cash cost of $84 per ounce in 2006. On a co-product basis, total cash costs were $299 per ounce compared to $272 per ounce in 2006. On both a by-product and co-product basis, Goldcorp remains the lowest cost, highest margin senior gold producer in the industry. The average realized price per ounce of gold sold increased to $685 compared to $620 per ounce in the third quarter of 2006.
Adjusted net earnings totalled $82.3 million, or $0.12 per share. At the 37.5% -owned Alumbrera mine, both gold and copper sales were significantly lower than production due to a concentrate shipment being delayed until the second week of October. The Company estimates that the delay reduced third quarter earnings by $0.03 per share. Operating cash flow before non-cash working capital adjustments was $208.6 million compared to $171.9 million in last year's third quarter as higher production and realized metals prices more than offset increases in production costs. Net earnings in the quarter were $75.8 million, prior to adjustments, compared to net earnings of $59.5 million in the third quarter of 2006.
On September 25, 2007, Goldcorp entered into an agreement with Kinross Gold Corporation to acquire Kinross' 49% share of the Porcupine gold mine and its 32% share of the Musselwhite gold mine, both in Ontario, in exchange for Goldcorp's 50% interest in the La Coipa silver-gold mine in Chile and $200 million in cash. The transaction highlights Goldcorp's continuing commitment to simplify its business and to focus on long-lived gold assets within the Company's core operating districts. The transaction is expected to close in the fourth quarter of 2007. La Coipa results have been reclassified as discontinued operations, except for certain operational statistics and other information, where noted.
For the nine months ended September 30, 2007, gold sales increased to 1,614,900 ounces at a total cash cost of $151 per ounce, compared with 1,108,500 ounces at a total cash cost of negative $35 per ounce in 2006. Adjusted for certain non-cash items, net earnings amounted to $260.5 million, or $0.37 per share. Gold production in the nine month period increased 50% to 1,653,700 ounces in 2007 compared with 1,105,400 ounces in the 2006 period.
Operations Review
Canada
http://biz.yahoo.com/iw/071109/0326691.html
Goldcorp Reports Third Quarter Earnings
Friday November 9, 8:00 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Nov 9, 2007 -- All Amounts in $US unless stated otherwise.
GOLDCORP INC. (Toronto:G.TO - News)(NYSE:GG - News) today reported adjusted net earnings of $82.3 million(1), or $0.12 per share, for the quarter ended September 30, 2007.
ADVERTISEMENT
Third Quarter 2007 Highlights:
- Gold production increases 28% to 556,200 ounces(2)
- Gold sales increase 29% to 537,200 ounces(2)
- Realized gold price of $685 per ounce
- Total cash costs of $140 per gold ounce(2,3), net of by-product credits
- Strong margin growth to $545 per gold ounce on a by-product basis
- Net earnings of $75.8 million or $0.10 per share
- Operating cash flow of $208.6 million (before working capital adjustments)(4)
- Dividends of $31.7 million paid during the quarter
- Agreement to acquire 100% ownership of key Canadian gold mines
- Reaffirms 2007 production guidance of 2.2 to 2.3 million ounces of gold at a total cash cost of $150 per ounce
"During the third quarter, Goldcorp grew gold production at much lower cash costs than industry averages," said Kevin McArthur, President and Chief Executive Officer of Goldcorp. "We enjoy the best gross margin in the senior space, enabling shareholders to participate fully in the continued strong market for gold. Maintaining this margin advantage and growing production by over 50% in the next few years remains our primary focus.
"Our operational and corporate initiatives are bearing fruit in this year of consolidation and transition. We have demonstrated quarter-over-quarter improvements, although these were somewhat diluted in the third quarter by storm-related power outages at Red Lake and a late concentrate shipment at Alumbrera. These effects are not expected in the fourth quarter and beyond. In fact, planned completion of the Red Lake expansion and the start-up at commercial operations at Los Filos in Mexico will lay the groundwork for a strong 2008."
Financial Review
Gold sales in the third quarter increased to 537,200 ounces at a total cash cost of $140 per ounce, compared with 421,400 ounces at a total cash cost of $84 per ounce in 2006. On a co-product basis, total cash costs were $299 per ounce compared to $272 per ounce in 2006. On both a by-product and co-product basis, Goldcorp remains the lowest cost, highest margin senior gold producer in the industry. The average realized price per ounce of gold sold increased to $685 compared to $620 per ounce in the third quarter of 2006.
Adjusted net earnings totalled $82.3 million, or $0.12 per share. At the 37.5% -owned Alumbrera mine, both gold and copper sales were significantly lower than production due to a concentrate shipment being delayed until the second week of October. The Company estimates that the delay reduced third quarter earnings by $0.03 per share. Operating cash flow before non-cash working capital adjustments was $208.6 million compared to $171.9 million in last year's third quarter as higher production and realized metals prices more than offset increases in production costs. Net earnings in the quarter were $75.8 million, prior to adjustments, compared to net earnings of $59.5 million in the third quarter of 2006.
On September 25, 2007, Goldcorp entered into an agreement with Kinross Gold Corporation to acquire Kinross' 49% share of the Porcupine gold mine and its 32% share of the Musselwhite gold mine, both in Ontario, in exchange for Goldcorp's 50% interest in the La Coipa silver-gold mine in Chile and $200 million in cash. The transaction highlights Goldcorp's continuing commitment to simplify its business and to focus on long-lived gold assets within the Company's core operating districts. The transaction is expected to close in the fourth quarter of 2007. La Coipa results have been reclassified as discontinued operations, except for certain operational statistics and other information, where noted.
For the nine months ended September 30, 2007, gold sales increased to 1,614,900 ounces at a total cash cost of $151 per ounce, compared with 1,108,500 ounces at a total cash cost of negative $35 per ounce in 2006. Adjusted for certain non-cash items, net earnings amounted to $260.5 million, or $0.37 per share. Gold production in the nine month period increased 50% to 1,653,700 ounces in 2007 compared with 1,105,400 ounces in the 2006 period.
Operations Review
Canada
http://biz.yahoo.com/iw/071109/0326691.html
WorldWater & Solar Technologies System Commissioned On Trenton Federal Courthouse -- First Solar Installation for U.S. General Services Administration's Mid-Atlantic Region
Thursday November 8, 3:51 pm ET
Ceremony Held November 8 at Courthouse
EWING, N.J., Nov. 8, 2007 (PRIME NEWSWIRE) -- WorldWater & Solar Technologies Corp. (WWAT), developer and marketer of proprietary high-power solar systems, the U.S. General Services Administration (GSA) and the State of New Jersey Board of Public Utilities (NJBPU) today commissioned the new solar system at the Clarkson S. Fisher Courthouse Annex in Trenton, New Jersey.
ADVERTISEMENT
This is the first solar installation for the GSA Mid-Atlantic Region and the first GSA project for WorldWater. It is projected to yield an energy savings of approximately 50,000-kilowatt hours annually. Installed on the roof of the seven-story Annex, the photovoltaic array will provide a substantial portion of the building's electricity during daylight hours. When offices are closed, the Courthouse will earn net metering credits from PSE&G for system-generated electricity, further reducing the government's utility bill. The project was funded in partnership with the state of New Jersey through the Customer Onsite Renewable Energy (CORE) program administered by NJPBU.
Dignitaries attending the event included: Barbara L. Shelton, Regional Administrator, GSA Mid-Atlantic Region; Mark Ewing, Director, Center for Energy Expertise and Joseph Fiordaliso, Commissioner, State of NJ Board of Public Utilities. WorldWater executives also attended along with Ray Angelini of RAI, WorldWater's joint venture partner in the project, among others.
Quentin T. Kelly, Chairman and CEO of WorldWater & Solar Technologies stated, ``We are encouraged that state and federal governments are aggressively supporting solar power. The Federal Energy Bill that instituted the 30% investment tax credit is spurring investors, creating private sector jobs and benefiting the environment across the country. This milestone GSA project shows how state and federal interests can cooperate to show how public buildings can also benefit from solar, save on electricity, use less fossil fuel and avoid emitting tons of carbon dioxide into our air.''
http://biz.yahoo.com/pz/071108/130974.html
AmateurInvestor Mid Week [ 1450]
http://www.amateur-investor.net/AII_Mid_Week_Analysis_Nov_7_07.htm
OT:I'll do it this weekend
yeah with more time & share it with ur best girl.
Fed.2)3)7day RP + 20.00B [ net Drain -6.25B]
Fed.3) 1day RP + 3.75B
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Fed.2)3)7day RP + 20.00B [ net Drain -6.25B]
Fed.3) 1day RP + 3.75B
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Fed. 1) 13Day RP + 9.00B [ sofar
http://www.ny.frb.org/markets/omo/dmm/temp.cfm