goldenequity
11-07-2007, 10:51 AM
I am posting this in it's entirety for one reason....
you can cut and paste into an emailer to convert minds.
It is today's news..... followed by an EXACT answer to the issues in an audio interview. I broadcast emailed it out and it converted 5 people already this morning.
Here it is:
Subject: And Bush is demanding Congress to Authorize $150B MORE for a war we are financing on Credit from China???
Foreclosure Wave Sweeps America
November 6th, 2007
Via: BBC (http://news.bbc.co.uk/2/hi/business/7070935.stm):
A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis.
This could destabilise the US housing market and may also lead to further turmoil in financial institutions, who collectively own $1 trillion (£480.6bn) worth of sub-prime debt.
Cleveland, Ohio, is an industrial city on the banks of Lake Erie in the US “rust belt”.
It is the sub-prime capital of the United States. One in ten homes in the city is now vacant, and whole neighbourhoods have been blighted by foreclosed, vandalized and boarded-up homes.
Many of these homes are now owned by the banks and investment pools owning the mortgages, and the company making the most foreclosures in Cleveland is Deutsche Bank Trust, which acts on behalf of such investment pools.
Cleveland is facing a rising crime wave, and the cost of demolishing the vacant houses alone will cost the city $100m of its tax base.
--------------------------------------------------------------------------------
Dollar: Top China Official Suggests Currency Shift
November 7th, 2007
Via: MarketWatch (http://www.marketwatch.com/news/story/dollar-slumps-top-china-official/story.aspx?guid=%7B49785919%2D0D1E%2D4E6A%2DBF51%2 DD1DD1D2A874E%7D&dist=MostReadHome):
The U.S. dollar stumbled to new lows on Wednesday after a top Chinese official called for the country to shift more of its huge foreign exchange stockpiles out of the beleaguered greenback.
Cheng Siwei, vice chairman of the Standing Committee of the National People’s Congress, was quoted by wire services as saying China should shift more of its $1.43 trillion of currency reserves into “stronger currencies,” such as the euro, to offset “weak” currencies like the dollar.
He also said a rapid appreciation of the yuan is not necessarily the right move — as Washington and increasingly Europe are requesting — though Cheng insisted the country wasn’t actively seeking a major trade surplus.
Ron Paul speaks to these issues here:
http://www.ronpaulaudio.com/rpaudio/RonPaulFOXBusinessNewsinterview101607.m3u
The reports sent the beleaguered dollar to new lows against the euro, with the shared currency surging as high as $1.4703 from $1.4559 late Tuesday.
The Japanese yen also rallied, with the dollar falling to 113.52 yen from 114.71 yen. The British pound surged to $2.1025 — the first time sterling has broken $2.10 since May 1981 — from $2.0866.
Gold futures, which traditionally move in the opposite direction to the dollar because of their role as an inflation hedge, jumped $23.40 to $846.80 an ounce, and rose as high as $848 an ounce during the European morning. Oil futures rose above $98 a barrel in electronic trading.
“As if ballooning U.S. credit/ housing crunch data, back-to-back Fed cuts and soaring oil prices weren’t enough to stun the U.S. dollar, now we have the specter of central bank reserve asset diversification out of U.S. dollars to contend with,” said Vincent Chaigneau, the head of fixed income and foreign currency strategy at Societe Generale, in a note to clients.
--------------------------------------------------------------------------------
Markets Fear Banks Have $1 Trillion in Toxic Debt
November 6th, 2007
Via: Financial Times (http://www.ft.com/cms/s/0/4cd5c262-8bd6-11dc-af4d-0000779fd2ac.html):
A new phase in the credit crunch, one of “$1 trillion losses” seems to be dawning. The crisis at Citigroup and renewed doubts about some of the world’s leading banks disquieted stock markets on both sides of the Atlantic yesterday, with the fractious mood set to continue.
The FTSE 100 fell 69.2 to 6,461.4, with Alliance & Leicester (down 4 per cent) and Barclays (off 3 per cent, to a two-year low) singled out for punishment. In New York, Citigroup, down |4.9 per cent to multi-year lows, weighed on the Dow Jones index, which fell 51.7, or 0.4 per cent, to 13,543.4. Merrill Lynch, Goldman Sachs and Lehman Brothers also dropped on speculation they face more writedowns on top of the $40bn (£19bn) announced in the past four months.
Bill Gross, the chief investment officer of Pacific Investment Management, said US mortgage delinquencies and defaults would rise in 2008. “There are $1 trillion worth of sub-primes, Alt-As [self-certified] and basically garbage loans,” he said, adding that he expects some $250bn in defaults. “We’ve only begun to see the pain from rising mortgage payments,” he added. Brian Gendreau, an investment strategist at ING, commented: “Financials are 20 per cent of the S&P 500 and if that sector doesn’t do well all bets are off. People just don’t know what’s on the balance sheets.”
The banks remain unwilling to lend to each other, preferring to rebuild their balance sheets and “hoard liquidity” to buttress themselves against any shocks from repatriating off-balance-sheet losses from their special investment vehicles (SIVs). However, this tightening up has led to a vicious circle. Making credit tougher has exacerbated the problems of struggling mortgage holders in America; default rates then rise and make the banks even more exposed to losses as credit agencies downgrade their assets. This seems to be what happened at Citigroup. The admission that it was unable to assure investors that a potential $11bn write-down for sub-prime mortgages would not grow has led to this fresh fit of extreme nervousness. Huge write-downs by Merrill Lynch ($7.9bn) and UBS ($3.4bn) have not helped.
Ron Paul speaks to these issues here:
http://www.ronpaulaudio.com/rpaudio/RonPaulFOXBusinessNewsinterview101607.m3u (http://www.ronpaulaudio.com/rpaudio/RonPaulFOXBusinessNewsinterview101607.m3u)
you can cut and paste into an emailer to convert minds.
It is today's news..... followed by an EXACT answer to the issues in an audio interview. I broadcast emailed it out and it converted 5 people already this morning.
Here it is:
Subject: And Bush is demanding Congress to Authorize $150B MORE for a war we are financing on Credit from China???
Foreclosure Wave Sweeps America
November 6th, 2007
Via: BBC (http://news.bbc.co.uk/2/hi/business/7070935.stm):
A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis.
This could destabilise the US housing market and may also lead to further turmoil in financial institutions, who collectively own $1 trillion (£480.6bn) worth of sub-prime debt.
Cleveland, Ohio, is an industrial city on the banks of Lake Erie in the US “rust belt”.
It is the sub-prime capital of the United States. One in ten homes in the city is now vacant, and whole neighbourhoods have been blighted by foreclosed, vandalized and boarded-up homes.
Many of these homes are now owned by the banks and investment pools owning the mortgages, and the company making the most foreclosures in Cleveland is Deutsche Bank Trust, which acts on behalf of such investment pools.
Cleveland is facing a rising crime wave, and the cost of demolishing the vacant houses alone will cost the city $100m of its tax base.
--------------------------------------------------------------------------------
Dollar: Top China Official Suggests Currency Shift
November 7th, 2007
Via: MarketWatch (http://www.marketwatch.com/news/story/dollar-slumps-top-china-official/story.aspx?guid=%7B49785919%2D0D1E%2D4E6A%2DBF51%2 DD1DD1D2A874E%7D&dist=MostReadHome):
The U.S. dollar stumbled to new lows on Wednesday after a top Chinese official called for the country to shift more of its huge foreign exchange stockpiles out of the beleaguered greenback.
Cheng Siwei, vice chairman of the Standing Committee of the National People’s Congress, was quoted by wire services as saying China should shift more of its $1.43 trillion of currency reserves into “stronger currencies,” such as the euro, to offset “weak” currencies like the dollar.
He also said a rapid appreciation of the yuan is not necessarily the right move — as Washington and increasingly Europe are requesting — though Cheng insisted the country wasn’t actively seeking a major trade surplus.
Ron Paul speaks to these issues here:
http://www.ronpaulaudio.com/rpaudio/RonPaulFOXBusinessNewsinterview101607.m3u
The reports sent the beleaguered dollar to new lows against the euro, with the shared currency surging as high as $1.4703 from $1.4559 late Tuesday.
The Japanese yen also rallied, with the dollar falling to 113.52 yen from 114.71 yen. The British pound surged to $2.1025 — the first time sterling has broken $2.10 since May 1981 — from $2.0866.
Gold futures, which traditionally move in the opposite direction to the dollar because of their role as an inflation hedge, jumped $23.40 to $846.80 an ounce, and rose as high as $848 an ounce during the European morning. Oil futures rose above $98 a barrel in electronic trading.
“As if ballooning U.S. credit/ housing crunch data, back-to-back Fed cuts and soaring oil prices weren’t enough to stun the U.S. dollar, now we have the specter of central bank reserve asset diversification out of U.S. dollars to contend with,” said Vincent Chaigneau, the head of fixed income and foreign currency strategy at Societe Generale, in a note to clients.
--------------------------------------------------------------------------------
Markets Fear Banks Have $1 Trillion in Toxic Debt
November 6th, 2007
Via: Financial Times (http://www.ft.com/cms/s/0/4cd5c262-8bd6-11dc-af4d-0000779fd2ac.html):
A new phase in the credit crunch, one of “$1 trillion losses” seems to be dawning. The crisis at Citigroup and renewed doubts about some of the world’s leading banks disquieted stock markets on both sides of the Atlantic yesterday, with the fractious mood set to continue.
The FTSE 100 fell 69.2 to 6,461.4, with Alliance & Leicester (down 4 per cent) and Barclays (off 3 per cent, to a two-year low) singled out for punishment. In New York, Citigroup, down |4.9 per cent to multi-year lows, weighed on the Dow Jones index, which fell 51.7, or 0.4 per cent, to 13,543.4. Merrill Lynch, Goldman Sachs and Lehman Brothers also dropped on speculation they face more writedowns on top of the $40bn (£19bn) announced in the past four months.
Bill Gross, the chief investment officer of Pacific Investment Management, said US mortgage delinquencies and defaults would rise in 2008. “There are $1 trillion worth of sub-primes, Alt-As [self-certified] and basically garbage loans,” he said, adding that he expects some $250bn in defaults. “We’ve only begun to see the pain from rising mortgage payments,” he added. Brian Gendreau, an investment strategist at ING, commented: “Financials are 20 per cent of the S&P 500 and if that sector doesn’t do well all bets are off. People just don’t know what’s on the balance sheets.”
The banks remain unwilling to lend to each other, preferring to rebuild their balance sheets and “hoard liquidity” to buttress themselves against any shocks from repatriating off-balance-sheet losses from their special investment vehicles (SIVs). However, this tightening up has led to a vicious circle. Making credit tougher has exacerbated the problems of struggling mortgage holders in America; default rates then rise and make the banks even more exposed to losses as credit agencies downgrade their assets. This seems to be what happened at Citigroup. The admission that it was unable to assure investors that a potential $11bn write-down for sub-prime mortgages would not grow has led to this fresh fit of extreme nervousness. Huge write-downs by Merrill Lynch ($7.9bn) and UBS ($3.4bn) have not helped.
Ron Paul speaks to these issues here:
http://www.ronpaulaudio.com/rpaudio/RonPaulFOXBusinessNewsinterview101607.m3u (http://www.ronpaulaudio.com/rpaudio/RonPaulFOXBusinessNewsinterview101607.m3u)