The gloves come off: “”In our opinion, the United States has already been defaulting,” Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying… Beijing cut its holdings of US Treasury securities for the fifth month in a row to $1.145 trillion in March, down $9.2 billion from February and 2.6 percent less than October’s peak of $1.175 trillion, US data showed last month.”
Archive for June, 2011
“These cases can go on and on. Nationwide, it takes an average of 565 days to foreclose on borrowers in default from their first missed payments to the final auction. In New York, the average is 800 days and in Florida, where the “robo-signing” issue is particularly combative, it’s 807.” — Sad to say it but this serves the banksters right.
“Shoppers paid 4% more for a basket of 16 food items at the supermarket in May compared to February, the American Farm Bureau Federation said Thursday in its latest informal survey.” — That’s a 17% annualized rate of inflation, but don’t tell Ben Bernanke… On Thursday, J.M. Smucker, maker of Folgers coffee and Hungry Jack pancake mix, said its cost of products sold will jump 25% over the next 12 months… “Further retail price increases are likely to be the new normal as we move through 2011, especially for meats,” American Farm Bureau economist John Anderson said in a statement. Based on first quarter reports, Kraft appeared to be the only major food company that was able to raise its prices enough to cover its commodities tab.
“After the obscene extremes of equity valuations seen during the 2000 bubble, we have entered a long valuation bear market which should end in extreme levels of cheapness consistent with an S&P around 400.” — This basically says the US looks to be heading into a Japan-like open-ended financial malaise; what it doesn’t talk about is the distinct possibility (likelihood?) of currency crisis here (and for that matter, Japan), making a mockery of the “Ice Age” metaphor.
“Originally it was thought that Grassley’s requests for details on certain trades was because he was investigating Steve Cohen’s mammoth hedge fund, but in fact, he was investigating the SEC. SAC was being used a case study by the Senator’s office, as he is concerned with how the SEC handles insider trading probes and referrals.”
” A working group of members from the Federal Housing Finance Agency and the Federal Housing Administration to consider changes to pricing and other standards at Fannie Mae, Freddie Mac, and the FHA, with the objective of reducing their market share over time.”
” The Mortgage & Finance Association of Australia has urged the government to rethink its controversial ban on mortgage exit fees after the Australian Bureau of Statistics released figures showing competition was further drying up in the crucial financial sector.”
“Buyers of homes costing more than HK$6 million ($770,000) will have to increase up-front payments, with properties of HK$10 million or more requiring 50 percent”
“The Obama administration’s mortgage modification program is more than two years old. From the beginning, it’s been apparent that the participating banks and mortgage servicers were breaking the program’s rules. The administration has long argued it has little power to do anything about it. But now, after millions of homeowners have been rejected, the government has decided it’s finally time to crack down.”
“California’s Senate Republicans blocked Governor Jerry Brown’s plan to erase a $10 billion deficit as closed-door talks remain snagged on his demand for higher taxes as a deadline to pass a budget looms.”