Jim Sinclair’s Commentary

You really want to go long the common shares of the USA Inc, the US dollar?

Report: Foreclosure Inventory Hits Record Level in June
By PAUL JACKSON
July 29, 2009 8:45 AM CST

The nation’s housing markets are clearly developing a bi-polar disorder all their own: fresh evidence of a possible recovery is consistently tempered with equally fresh evidence of continuing trouble ahead. A new report released Wednesday morning by Jacksonville-based Lender Processing Services, Inc. presents the latest mixed bag of results, with fresh evidence that housing might be turning the corner.

Put the emphasis on might.

In particular, roll rates — which measure the volume of loans moving from good to bad, and from bad to worse — improved during June, with new delinquencies dropping to their second lowest level in the last year, the firm said. The percentage of delinquent loans moving from bad to worse declined across all product types, as well. Which is at least some good news for a market that has been in dire need of something positive for the better part of two years running.

But for the nascent improvements now being seen, there remain numerous hurdles that suggest the nation’s housing market isn’t really out of the woods just yet. In particular, foreclosures soared to new record highs in June, LPS found: The national foreclosure inventory rate during June was 2.86%, up 2.5% from one month earlier and a huge increase of 86.1% from year ago levels. Total delinquencies rose as well, to 8.58%, up 44% from one year earlier.

Reflecting the mortgage crisis’ evolution away from all things subprime, prime jumbo mortgages continue to fare the worst, comparatively: foreclosures among good-credit borrowers with high loan balances are up a whopping 580% since Jan. 2008, LPS said.

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Jim Sinclair’s Commentary

Of all government programs this is the most convoluted condition dependent one yet.

The more complex government programs are the easier it is to steal from them.

This does not pass the smell test, ALL VALID:

“A White House official said the Obama administration is assessing the situation, but added that "auto dealers and consumers should have confidence that all valid … transactions that have taken place to-date will be honored."

Cash for Clunkers may be put on hold
The federal government is considering whether to put the $1 billion Cash for Clunkers program on hiatus until it can sort out how much has been spent.
By Jennifer Liberto and Peter Valdes-Dapena, CNNMoney.com senior writers
Last Updated: July 30, 2009: 9:39 PM ET

NEW YORK (CNNMoney.com) — The federal government may suspend its $1 billion Cash for Clunkers program after less than a week over concerns that the plan may have already burned through its funds, according to congressional sources.

A White House official said the Obama administration is assessing the situation, but added that "auto dealers and consumers should have confidence that all valid … transactions that have taken place to-date will be honored."

The Department of Transportation, which runs the program, wants to sort out how much of the plan’s funds it has already committed.

Cash for Clunkers officially launched less than a week ago.

It is set to end on Nov. 1, or whenever its $1 billion budget has been depleted.

Under the plan, vehicles purchased after July 1 will be eligible for refund vouchers worth $3,500 to $4,500 on traded-in gas guzzlers. The trade-in vehicle has to get combined city and highway fuel economy ratings of 18 miles per gallon or less.

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Jim Sinclair’s Commentary

And $1224, $1650 and then on to Alf’s numbers.

Gold will hit $1,000 again
Gold will revisit $1,000 as investment demand and jewellery purchases rebound and supply decreases annually, a senior World Gold Council official said.
By Bloomberg
Published: 11:39AM BST 30 Jul 2009

On the supply side, gold mining production has been decreasing at a rate about 4 to 5pc per year after reaching a peak production in 2001, Jason Toussaint, managing director of exchange traded gold, said today. "Even if demand stays the same, prices must go up."

Gold, traditionally a popular hedge against financial turmoil due to its store of value, has risen 5.7pc this year and briefly traded above $1,000 in February. It reached a record $1,032.70 on March 17, 2008.

"Investors are much more focused on wealth preservation than upside returns because they are much more focused on risk management within portfolios," Toussaint said. "We will see that continue. Demand for gold will also rise as pension funds, sovereign funds and other asset managers seek to preserve their wealth against inflation. Only 3pc to 5pc of assets at large institutions are allocated to gold, he said."

Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, fell to 1,072.87 tons yesterday, the lowest since March 17, according to the company’s website.

Gold for immediate delivery was up 0.2pc at $931.63 an ounce.

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Jim Sinclair’s Commentary

Attention you F-TV China bashers. Read and weep!

These provincial USA F-TV people do not know that they are seen or heard everywhere on the globe.

They are total embarrassments as they expound rank provincialism and xenophobia.