I am growing ever more concerned that trust in financial institutions is eroding. Trust, after all, is what allows you to keep your money, gold, silver and other assets stored with various financial institutions (banks, brokerages, etc.). Once that trust is gone, the repercussions go far beyond hurt feelings.
Given the recent MF Global collapse, followed by this story in Bloomberg in which we can’t figure out who actually owns gold and silver bars (with great analysis from ZeroHedge), I feel it is necessary to post the video clip below for everyone’s benefit.
“Too Fast To Stop” – Hank Paulson On What Happens When A Bank Run Results From Terrified Depositors (You) Who Start Withdrawing All Of Their Cash. Take 1min 12secs out of your life and watch this video clip from Too Big To Fail in which Treasury Secretary Paulson explains to his wife how fast it might all collapse
CHINESE COPPER LIES: Chinese Copper Inventories Revealed To Be Double Estimated … Or are they? Did China lie in 2010, or now? Read More
ENVIRO AT RING OF FIRE: Mining Watch Canada NOT Happy With Ring Of Fire Enviro Assessment Member Post
GRAPH – AMERICANS NOT WORKING: Only 58% Of Americans Have A Job Today … What It Will Take To Fix It Read More
RITHOLTZ PISSED AS FLORIDA AG FOR SALE: Florida AG Takes Orders, Money from Fraudclosure Firm – Fires top Fraudclosure lawyersRead More
ZINC LOOKS GOLDEN: Zinc Bear Market Seen Coming To An End With China Gobbling Up Supplies … Good For New Donner Metals / Xstrata Mine … Full Story
MUST WATCH VIDEO … Jeffrey Sachs Hammers Wall Street, Republican Congress and Obama At Occupy Wall Street Scrum … Why The Whole System Is Rigged And Why It Needs To Be Ripped Down Watch Video
Until this trend changes, the US economy is moving closer to 1960 than 2000. What will it take to turn this trend around? A combination of the following:
Banks need to start lending to small business
Corporations need to start spending some of their cash
Congress needs to provide fiscal stimulus that focuses on small business and large infrastructure
Congress and / or the Fed need to unclog the real estate market = incentives for banks and borrowers to take their medicine and finally part with dead real estate
Click on image to be taken to full story at Business Insider
You simply need to listen to Obama supporter, Economist, Harvard Professor. If you need to review his qualifications, see the Wikipedia entry below …. but watch the video first and take my word for it. Here are just some of the things he had to say, which aren’t original but carry much more weight given his status. I love the fact he expressed them on the fly during a media scrum at OccupyWallStreet …. The man needs to run for President:
The White House, Congress and The Senate Are Bought And Paid For
Get The Money Out Of Politics IF You Want Democracy Back
Obama Looked Like He Was Going To Change This Until He Put Wall Street Into The White House
He Hired The Team That Created The Mess To Begin With
Sachs Supported Obama In The Last Election
Obama Is Raising A $1 Billion War Chest For Re-Election
The People Need To Use Social Media To Effect Change As Fast And As Wide As Possible
Especially Since American Politicians Don’t Have A Clue About Social Media And Can Be Exploited
Who Watches TV Anymore Anyway
Jeffrey David Sachs (pronounced /ˈsæks/; born November 5, 1954, in Detroit, Michigan) is an American economist and Director of The Earth Institute at Columbia University. One of the youngest economics professors in the history of Harvard University, Sachs became known for his role as an adviser to Eastern European and developing country governments in the implementation of so-called economic shock therapy during the transition from communism to a market system or during periods of economic crisis. Some of his recommendations have been considered controversial. Subsequently he has been known for his work on the challenges of economic development, environmental sustainability, poverty alleviation, debt cancellation, and globalization.
Sachs is the Quetelet Professor of Sustainable Development at Columbia’s School of International and Public Affairs and a Professor of Health Policy and Management at Columbia’s School of Public Health. He is Special Adviser to United Nations Secretary-General Ban Ki-Moon, and the founder and co-President of the Millennium Promise Alliance, a nonprofit organization dedicated to ending extreme poverty and hunger. From 2002 to 2006, he was Director of the United Nations Millennium Project’s work on the Millennium Development Goals, eight internationally sanctioned objectives to reduce extreme poverty, hunger, and disease by the year 2015. Since 2010 he has also served as a Commissioner for the Broadband Commission for Digital Development, which leverages broadband technologies as a key enabler for social and economic development.[1] He is a member of the scientific committee of the Fundacion IDEAS, Spain’s Socialist Party’s think tank.
He has authored numerous books, including The End of Poverty and Common Wealth, both New York Times bestsellers and his latest book The Price of Civilization released on October 4, 2011. He has been named one of Time Magazine’s “100 Most Influential People in the World” twice, in 2004 and 2005.
Great video by Peter Schiff who is always worth watching when he speaks. He accidentally states “November 2nd” as opposed to September 2nd at the outset – but unless he grabbed a flux capacitor from Michael J Fox and taped this Back In The Future, you can bet this is recent and hot off the press.
In addition to gold, he’s got some great commentary about US Treasuries, PIMCO and the US economy as a whole.
ZeroHedge readers seem to be in unanimous agreement with my above noted comment (22 – 0) regarding this report that Obama and the Feds are about to open up a can of whoop-ass on the banks:
To be clear, despite the fact I’m conservative in both my economics and politics, I was a supporter of Obama on the hope he could restore some humanity to the political process after “W” and his crew drove the world to the brink.
Unfortunately, Obama’s failure to go after big banks and Day 1 (when he was in their pocket) … only to turn on them now in a desperate attempt to save his Presidency, serves to prove that people have virtually no hope of having any politicians serve in their best interest …. and that some kind of revolution will take place within my lifetime as people get used and pushed to the brink.
My disappointment will only be subdued by what another reader said best:
So it’s come down to cannibalization among the government and banking elites.
Let the games begin … the next 14 months are going to be wild.
The following story / poll is running on CNBC today … pretty self-explanatory so I will save my own commentary and would like to see you chime in with your comments below … but my Gold $2,000 blog posts (115) are looking sweeter by the day
I continue my 2009 bearish call on US real estate for all the same reasons … and I see nothing to even begin changing my mind. The best Americans can hope for is a base at current levels … but my call is that US real estate is going to get worse.
If for no other reason, consider the fact that US real estate prices have failed to move higher despite US Federal Reserve ZIRP (zero interest rate policy), which we now know will continue into 2013. God help homeowners if the bond markets decide to take matters into their own hands and demand higher rates, or if the Chinese decide enough is enough.
In the meantime, have a look at the following graph illustrating US home inventories, courtesy of the good people over at Calculated Risk … Despite the fact that home inventories are actually lower to the tune of 8.9% over last year, the months of supply is moving higher due to a slower sales pace. That kind of divergence can only be described as bad … very bad.
TOP STORY … OMAGINE 10Q AFTER HOURS FRIDAY REVEALS …
“His Majesty The Sultantan of Oman Is A 25% Owner Of Omagine LLC … We Believe The Final Development Agreement Will Be Signed By September 15, 2011” Full Release
*** OMAG Is A Client … We Own Shares and Options … Go To OMAG HUB
$2,000 GOLD - Bank Of America Makes The Call … Full Story
NIXON FROM THE GRAVE … Today Is The 40th Anniversary Of Nixon Removing $USD From The Gold Standard … Not A Celebration … The Case For $USD Demise … Watch Video
GOLD FOR CASH FOR MORE GOLD : Junior Gold Producers Rising to the OccasionVia Prospecting Journal Full Story
HOW GEORGE SWING TRADES: See How George Traded 2 Positions In Avalon Ventures Between Wed – Friday AGORACOM Twitter
VIDEO: US REAL ESTATE STILL DOOMED – In Case You Didn’t Believe Geore’s OCT/09 Prediction – Which Has Come True – Here Is More Support From Barry Ritholtz In AUG/11 Watch Video
I’ve been unwavering in my call for continued US real estate carnage since 2009 … nothing has changed my mind and I continue to believe it gets worse … my friend Barry Ritholtz agrees BUT he does pitch a great solution around immigration policies that I totally agree with.
