Tuesday, August 23, 2011

Morning Update/ Market Thread 8/23

Good Morning,

Futures were higher this morning… in fact they were substantially higher, but have since given all the after hours fluff back. The dollar, of course, took a plunge to allow the ramp in equities – the net effect is those in the market get to momentarily sustain their accounts while the rest of the world wallows to support them. It’s a giant inequity in the making, look for more nasty “other events” which are now constantly in motion. Bonds are lower, oil is higher, gold reached an unbelievable $1,915 an ounce before pulling back under $1,900, silver is following, and food commodities are zooming just to add injury to the now obvious insult.

The only economic release today is New Home Sales which is released at 10 Eastern and will be reported inside of today’s Daily Thread.

While on the subject of homes, I want to post an update to the Option-ARM reset chart since we are almost exactly at the peak of Option-ARM resets right now:



These mortgages must reset, and note that rates went down sharply right into the peak. Doesn’t matter, many of those ARMS will reset much higher anyway because of the way they were written (to take advantage of the home “owner”), and those looking to refinance won’t be able to because their McMansions won’t appraise for their loan value. That means more people will fall behind and will simply be unable to keep their payments going, thus further injury to the fraud/fluff banks.

Still, reaching the peak in resets means that a very heavy anchor is about to get lighter very quickly – and that will mean that the housing market will at least begin not to have the crush of ever increasing inventory. This will take time, don’t look for an immediate turn around, just that the pressure will begin to ease.

Let’s take a moment to assess the situation in Fukushima. It’s as ugly as ugly gets, the product of special interest pandering, unchecked growth, and greed, this should give tremendous pause to any nuclear advocate and yet here in the U.S. we are talking tough about coal, not nuclear despite the fact we have many vulnerable plants with waste stacked monumentally high. In the following video Arnie Gunderson once again rationally updates you on the situation:

New Data Supports Previous Fairewinds Analysis, as Contamination Spreads in Japan and Worldwide

We all need to get REAL folks, and stop supporting the criminals who brought this mess to you.