Wednesday, December 21, 2011

Morning Update/ Market Thread 12/21 - Ridiculous, Impossible, Nothing but FRAUD Edition...

Good Morning,

Equity futures are close to even following yesterday’s ridiculous ramp. The dollar is bouncing, bonds are flat, oil is higher, gold & silver are mixed, and food commodities are down slightly.

Here’s a Bloomberg headline that should make your blood boil as an American, "Bernanke Prods Savers to Become Consumers." Wow, talk about setting your own nation up for failure, self-interest above all else is what he is basically saying. No need to save according to him, he would much rather lend you money so that he and the rest of the private central bankers can continue to be rich off your productive efforts. Why yes, of course more of the same behavior that got us to where we are today will definitely cure the impossible math, sure.

Speaking of impossible math, try this one on and think about the size of these numbers reported by Bloomberg: “The ECB awarded 489 billion euros ($645 billion) in 1,134- day loans, the most ever in a single operation and more than economists’ median estimate of 293 billion euros in a Bloomberg News survey.”

OMG! $645 billion in one day? That’s quite the “operation!” And the math is so ridiculously out-of-control that it’s not even funny. As if more debt money, more “liquidity” is what is needed! Too much money, all in the WRONG HANDS is the problem! Does this look like a money shortage problem to you?


No, the problem never has been about liquidity, the real problem is solvency – the difference being that it requires income to service debt, creating more debt, as in the ECB “operation” above, only makes the solvency problem worse. Ridiculously impossible – laughable.

There’s only one way out of the impossible math, and it involves clearing out the debt. And then there’s only one way to prevent it from happening again, and that involves changing out WHO it is that was wrongly given the authority to control the production of our money.

Turning back to the housing market, here’s a statistic that will blow your socks off:
NEW YORK (CNNMoney) -- Nearly five years into the crisis, just how badly are foreclosures still hurting the housing market?

A whopping 46% of homes sold in November were either short sales or REOs -- as homes foreclosed on and repossessed by lenders are called, according to a survey by Campbell/Inside Mortgage Finance released Tuesday.

"The huge glut of distressed properties coming to market is why there will be no home price rebound this coming year and maybe into 2013," said Guy Cecala of Inside Mortgage Finance, a publisher of mortgage information and news.

Nearly half of all sales are short sales or REO’s! Think about that one – it means that only half of the already depression era level reported sales figures are conventional transactions! And each family behind that bank owned property or short sale is a devastated family – great job for your masters, Bernanke, I’m thinking treason is a hanging offense.

Speaking of treason, the hypocritical Mortgage Bankers Association are in a criminal class all by themselves. Here’s Econocomplicit reporting their latest down numbers for the prior week:
News on the housing market has been turning positive but not for the purchase index for the December 26 week which fell 4.9 percent. The four-week average for the purchase index is down 1.5 percent. The Mortgage Bankers Association warns that low interest rates by themselves aren't enough to stimulate demand given lack of equity in existing homes, poor credit conditions and a still weak jobs market.

The refinancing index fell 1.6 percent in the latest week with the four-week average up 1.3 percent. The average 30-year rate for conforming loans ($417,500 or less) is down four basis points to 4.08 percent for a new 2011 low. Data on existing home sales will be posted at 10:00 a.m. ET this morning.

Nice warning from the asshats who helped destroy so many lives and create so much suffering and turmoil for so many.

Existing Home Sales data was just released by the fraudsters, NAR. The National Association of Realtors, another self-interest driven special interest group has been caught red-handed fudging the housing sales numbers for the past five years. According to other groups who track the data, their overstatement is approximately 20%, and the NAR just owned up to the following:
Also released today are benchmark revisions to historic existing-home sales. The 2010 benchmark shows there were 4,190,000 existing-home sales last year, a 14.6 percent revision from the previously projected 4,908,000 sales. For the total period of 2007 through 2010, sales and inventory were downwardly revised by 14.3 percent. The revisions are expected to have a minor impact on future revisions to Gross Domestic Product.

That’s right, they are revising their data downward by 14.3% for the past four years – a start. But they claim it’s mostly a mistake in their accounting of homes listed “for sale by owner.” Sorry, not believable, there are not enough for sale by owner properties to cover half that figure as they claim. My belief is the NAR was intentionally overstating figures in order to make their own industry appear to be in better shape than it actually was. That is called FRAUD, and there are laws against committing fraud!

Just think of the impact of their fraud… lives ruined, the largest economy in the world distorted by their lies. Their lie is a part of our grossly overstated GDP for crying out loud! This is exactly why private self-interested parties should not be allowed to disseminate important economic statistics on their own industry!

Can you imagine if all sales figures are overstated by nearly 15% (or more)? Gee, what would that revised GDP look like? What, then, would the revised debt to GDP look like? You seeing that snow ball?

Oh yeah, for November Existing Home Sales, according to NAR, fell to a pathetic 4.42 million homes from October’s 4.97 million, this is well below the 5.08 million expected by those economic guessers conditioned by the continuous FRAUD.

Now, if you would like to listen to the NAR’s propaganda on how they calculate their numbers, then the following convoluted methodology is presented:

Of course they could just gather reported sales data from the counties as the sales are recorded, but then they couldn’t claim ignorance, could they? Well, I guess that since MERS isn’t following the law to record titles, STILL, that might not reflect reality either. No rule of law, can’t believe MERS still exists, can’t believe the NAR is allowed to report data on their own industry – that data should come from a neutral, non-conflicted party.

More fraud? The Comex doesn't possess the gold (and other commodities) to which they have open contracts. That means they are fractionalizing gold (and other commodities). In the case Kyle Bass cites below, the Comex has $80 billion in contracts, only $2.7 billion in deliverables! That's only 3.37% of actual materials!! So, as Kyle points out, should 4% of people request actual delivery, the Comex will be unable to deliver to the remaining 96+%... Sure, no fraud there, completely manageable leverage, no problem whatsoever, go long!

By the way, fractionalizing of gold was the way central bankers got started in the money making business, just sayin'...

I, Nathan Martin, no longer consent to the lies.