Monday, October 18, 2010
Can a 60 cent stock go to $10?
Meyer's Special Report makes the case for Greenland Minerals in this video that was just sent out to subscribers.
click here to watch
The company has deposits of rare earth minerals and uranium in Greenland worth over $2 billion.
NO LOSS DOW JONES TRADE. CLICK HERE.
M2 Update: 14th Consecutive Weekly Increase Even As Main Street Accelerates Cash Withdrawal From Banks
The two main protagonists are the Goldbugs and the Interest-Free Money community. The battle was ignited by Gary North who attacked Ellen Brown, calling her a 'Greenbacker'. Brown and North agree that Fractional Reserve Banking needs to go, but Brown wants the Government to print debt free (and therefore interest free) money.
To North this is incomprehensible, because he thinks paper money is paper money. It is not though. Interest bearing debt to a bank is a very different beast indeed than is debt free, interest free money printed by the Government. However, North, as do other Goldbugs, fear Government will always print too much money to cover their expenditures and Big Government programs. The question is: will Gold stop these inflation by Government? History suggests it won't."
Here's Ellen Brown's retort. Here's a high class framing of the debate by Eric Blair which was widely posted.
The Goldbugs and the Interest-Free Money people have been living in peaceful coexistence for many years. They have a common enemy: paper based fractional reserve banking. But now that the chances of the FED collapsing are becoming more real, the question what to do next arises.
Most people awakening to the Fractional Reserve hoax simply assume that the problem can be solved by Gold-based currency. After all: Gold cannot be printed. (more)
John Williams utters his most ruthless words of condemnation not only toward the Fed, but to everyone who is stupid enough to be chasing returns in the face of what is a hyperinflationary collapse.Euphoric Inflation Insanity. Buying U.S. stocks because the Fed says it will proactively debase the U.S. dollar is like sitting on the beach in order to get a great view of an incoming tsunami. Any pleasure so derived should be short-lived, when the terror of underlying reality quickly takes hold.
If one were to view movement in the price of gold as a surrogate for anticipated inflation, for example, the issues begin to come into focus. Consider that last night's (October 14th) respective S&P 500, Dow Jones Industrial Average and NASDAQ Composite closing levels were up by 7.5%, 10.8%, 12.1% from a year ago, but the price of gold was up by 29.6% in the same period. Relative to gold, which tends to hold its purchasing power over time -- albeit sometimes in an anticipatory manner -- the S&P 500, Dow Jones Industrial Average and NASDAQ Composite have declined respectively by 22.1%, 18.8% and 17.5% year-to-year. This is against the prospective inflation environment being discounted by the gold market.
While stock prices do tend to rise in an inflationary environment -- where revenues and profits are inflated -- rising stock prices do not always stay ahead of inflation. On a constant-dollar or real, inflation-adjusted basis, stocks go through bull and bear markets, just as they do otherwise. If prices do not stay ahead of inflation, investors lose value in terms of the purchasing power of their assets. The equity markets may rally in the upcoming inflation, but the systemic implications and current gold behavior suggest that the circumstance will not give investors a positive real return, as discussed in the Hyperinflation Special Report. (more)
Housing Secretary Shaun Donovan said Sunday that a national freeze on foreclosures would "do far more harm than good," pushing back against those calling for a blanket moratorium following claims that lenders may have used faulty paperwork to evict homeowners.
Donovan called the alleged corner-cutting "shameful" in a column published Sunday, days after attorneys general in all 50 states opened probes into the matter. He backed banks that have imposed "voluntary moratoria" but stopped short of supporting a broader ban.
"A national, blanket moratorium on all foreclosure sales would do far more harm than good -- hurting homeowners and homebuyers alike at a time when foreclosed homes make up 25 percent of home sales," Donovan wrote in his Huffington Post column.
Donovan explained that a blanket freeze could block first-time homebuyers from entering the market while ensuring that foreclosed homes stay vacant and drag down home prices in surrounding neighborhoods.
"Right now, families who have watched their home values decline over the last few years want nothing more than homebuyers ... to buy the vacant homes in their neighborhoods," he wrote. (more)
That means the federal debt commission’s findings could reshape government tax and spending policy in a dramatic fashion.
And some fear they smell a VAT, akin to a new national sales tax.
But a value-added tax is not tax reform, as it would most likely not replace, but get layered on top of, the US’s tangled barbed wire of a tax system.
A VAT is a symptom, not a cure, for fiscal incontinence.
Often installed with great fanfare as being debt busters in Europe, a VAT didn’t cure Europe’s debt problems—spending and debt only continued to grow under VATs there.
And so did Europe’s VATs, which started at 5% in the ‘60s and early ‘70s, and now average 18%. (more)
The housing crisis in 1933, and today The real-estate market is suffering now, but it was worse then
Answer: Actually, you’re in luck. I do know of one such study; it was done a few years ago by Alex Pollock, a resident fellow at the American Enterprise Institute in Washington and the former president of the Federal Home Loan Bank of Chicago.
Pollock looked back to 1933, when Congress created the Home Owners’ Loan Corp. as a temporary fix “to relieve the mortgage strain and then liquidate.”
While the current mortgage meltdown and resulting — or corresponding, depending on your point of view — housing bust has been described as the worst since the Great Depression, it is nothing when compared to what happened in ‘33, when a financial and economic collapse occurred that is all but impossible to imagine today.
Back then, about half of all mortgage debt was in default. Unemployment reached 25%, thousands of banks and savings and loans had failed and annual mortgage lending had fallen by some 80%. New residential construction had dropped by 80% as well. (more)
First off, the stock is now at $2 after a competitive company, SIGA, three days ago received a contract from the government that could be worth conceivably up to $2.8bb for its smallpox antiviral product.
This potentially $2.8bb contract for SIGA is very significant for PIP, which is engaged in a lawsuit with SIGA that could be worth billions to PIP. SIGA produces the smallpox antiviral ST-246, which was just awarded the government contract. SIGA and PIP were at one point, back in 2006, planning on merging. As part of the merger agreement, it was determined that if the merger did not go through that PIP would be able to exclusively license development and marketing rights for ST-246. The merger did not go through, BUT PIP never got the license agreement. Hence, PIP sued SIGA. In my original article I asserted that this was a catalyst for PIP to go higher but it was hard to quantify that catalyst since we didn't know what sorts of revenues ST-246 could generate. (more)
|Date||Time (ET)||Statistic||For||Actual||Briefing Forecast||Market Expects||Prior||Revised From|
|Oct 18||9:00 AM||Net Long-Term TIC Flows||Aug||-||NA||NA||$61.2B||-|
|Oct 18||9:15 AM||Industrial Production||Sep||-||0.1%||0.2%||0.2%||-|
|Oct 18||9:15 AM||Capacity Utilization||Sep||-||74.7%||74.8%||74.7%||-|
|Oct 18||10:00 AM||NAHB Housing Market Index||Oct||-||13||13||13||-|
|Oct 19||8:30 AM||Housing Starts||Sep||-||550K||575K||598K||-|
|Oct 19||8:30 AM||Building Permits||Sep||-||550K||565K||569K||-|
|Oct 20||7:00 AM||MBA Mortgage Applications||10/15||-||NA||NA||14.6%||-|
|Oct 20||10:30 AM||Crude Inventories||10/16||-||NA||NA||-0.416M||-|
|Oct 20||2:00 PM||Fed's Beige Book||Oct||-||-||-||-||-|
|Oct 21||8:30 AM||Initial Claims||10/16||-||450K||455K||462K||-|
|Oct 21||8:30 AM||Continuing Claims||10/09||-||4450K||4400K||4399K||-|
|Oct 21||10:00 AM||Leading Indicators||Sep||-||0.3%||0.3%||0.3%||-|
|Oct 21||10:00 AM||Philadelphia Fed||Oct||-||1.5||1.4||-0.7||-|