Great Article From Jim Sinclair !!!
WWW.JSMINESET.COM
Snippet:
Dear CIGAs:
The dollar bull's rational (an oxymoron if there ever was one) is as follows:
1. The thesis held by the dollar bulls is that the EU's economy will decline.
2. At the same time, the economy of the USA will improve, the OTC derivative markdowns are behind us and the credit lock-up will ease.
3. Because of this, the EU cannot raise interest rates but rather has to cut rates.
4. Because of this, the USA - with its improving economy and credit markets - will be forced to increase interest rates.
How about a race between the EU and USA to see whose economy craps out the most? My money is on the major manufacturer of OTC Derivatives being the first and fastest into the tank.That is to say the USA wins the race to the bottom of the ash can and just hangs out there.
The dollar falls after this major operation and trades to .72, thence to .62 and thence to .52. Gold trades to $1,200 and $1,650.
With the article below, the dollar bulls might actually have it totally backwards, and US Fed rates stay the same then decline
Federal Reserve finds deepening credit crisis
By MARTIN CRUTSINGER – 2 hours ago
WASHINGTON (AP) — More banks are tightening lending standards on home mortgages and other consumer and business loans as a deepening credit crisis exerts a heavier toll on the economy.
The Federal Reserve said Monday the percentage of banks reporting tighter lending standards rose across various loan types in its July survey. In April, the central bank had found that the percentage of banks reporting tighter lending standards was already near historic highs.
The new survey, conducted in early July, found that about 75 percent of the banks surveyed indicated they had tightened their lending standards for prime mortgages. That was up from about 60 percent of banks who said they were tightening lending standards for prime mortgages in the previous survey.
The Fed's July survey covered 50 banks which hold about 80 percent of the residential mortgages on the books of all commercial banks.
Out of this group of 50 banks, 32 said they were still originating so-called nontraditional home mortgages. Among these 32 banks, about 85 percent said they had tightened their lending standards, up from 75 percent who said they were tightening lending standards for nontraditional mortgages in the April survey.
The Fed defines nontraditional mortgages as adjustable-rate mortgages with multiple payment options, interest-only loans and "Alt-A" mortgages that require limited verification of income.
The Fed survey found that only seven of the 50 banks said they were still participating in subprime mortgages, loans made to borrowers with weak credit histories. Of those seven, six said they had tightened lending standards on subprime loans with only one saying it had left standards basically unchanged for subprime loans.
More...
WWW.JSMINESET.COM
Snippet:
Dear CIGAs:
The dollar bull's rational (an oxymoron if there ever was one) is as follows:
1. The thesis held by the dollar bulls is that the EU's economy will decline.
2. At the same time, the economy of the USA will improve, the OTC derivative markdowns are behind us and the credit lock-up will ease.
3. Because of this, the EU cannot raise interest rates but rather has to cut rates.
4. Because of this, the USA - with its improving economy and credit markets - will be forced to increase interest rates.
How about a race between the EU and USA to see whose economy craps out the most? My money is on the major manufacturer of OTC Derivatives being the first and fastest into the tank.That is to say the USA wins the race to the bottom of the ash can and just hangs out there.
The dollar falls after this major operation and trades to .72, thence to .62 and thence to .52. Gold trades to $1,200 and $1,650.
With the article below, the dollar bulls might actually have it totally backwards, and US Fed rates stay the same then decline
Federal Reserve finds deepening credit crisis
By MARTIN CRUTSINGER – 2 hours ago
WASHINGTON (AP) — More banks are tightening lending standards on home mortgages and other consumer and business loans as a deepening credit crisis exerts a heavier toll on the economy.
The Federal Reserve said Monday the percentage of banks reporting tighter lending standards rose across various loan types in its July survey. In April, the central bank had found that the percentage of banks reporting tighter lending standards was already near historic highs.
The new survey, conducted in early July, found that about 75 percent of the banks surveyed indicated they had tightened their lending standards for prime mortgages. That was up from about 60 percent of banks who said they were tightening lending standards for prime mortgages in the previous survey.
The Fed's July survey covered 50 banks which hold about 80 percent of the residential mortgages on the books of all commercial banks.
Out of this group of 50 banks, 32 said they were still originating so-called nontraditional home mortgages. Among these 32 banks, about 85 percent said they had tightened their lending standards, up from 75 percent who said they were tightening lending standards for nontraditional mortgages in the April survey.
The Fed defines nontraditional mortgages as adjustable-rate mortgages with multiple payment options, interest-only loans and "Alt-A" mortgages that require limited verification of income.
The Fed survey found that only seven of the 50 banks said they were still participating in subprime mortgages, loans made to borrowers with weak credit histories. Of those seven, six said they had tightened lending standards on subprime loans with only one saying it had left standards basically unchanged for subprime loans.
More...
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