John Browne on Inflation

Russia Prepares To Short $18 Billion

Voltron says: Usually banana republics are unable to raise money in their home currency and are "forced" to denominate their bonds in other currencies such as the US dollar. In this case it would seem that Russia is issuing debt in dollars not because they have to, but because they can . . . they will benefit from low interest rates and any crash in the dollar. Which would give them every reason to engineer a crash of the dollar. Imagine if China did this!

http://www.businessinsider.com/russia-preparing-to-short-eighteen-billion-dollars-2009-10

The FHA Is A Looming Disaster

• The FHA has expanded from guaranteeing just 2% of mortgages to over 20% in just a couple of years, dramatically raising its exposure to the still declining US housing market.
• The FHA still backs toxic, almost-no-money down mortgages. It will currently guarantee mortgages with as low as 3.5% downpayments.
• The FHA's mission is political: it is still trying to "expand home ownership."
• The discredited ideology of home ownership is the most toxic ideology since communism.
• The number of mortgage companies whose loans are backed from the FHA has grown from around 1,000 to over 3,300 but the FHA hasn't grown its ability to analyze these companies.
• A recent audit of FHA applications found only 5% included all the necessary documents.
• The leadership of the FHA is completely oblivious to its coming ruin.
• The FHA is in even worse shape than Fannie Mae and Freddie Mac.

video: http://www.businessinsider.com/the-fha-is-a-looming-disaster-2009-10

Daily Show: Dow 10,000

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Dow Jones Rebounds to 1999
www.thedailyshow.com
Daily Show Full Episodes Political Humor Ron Paul Interview

Chinese drywall problems

http://www.google.com/hostednews/ap/article/ALeqM5gD4avarflIqeq856bkEM8jMJRR_wD9BBMB980

When Big Returns Aren't That Big

http://www.smartmoney.com/investing/stocks/when-big-returns-aren-t-that-big/

Word on the street: TARP money used to buy US Treasuries

Voltron says: Rumor has it that much of the $700 Billion TARP bailout money was used to buy Treasuries (which is a typical form of collateral) which would explain how the new Treasury debt was absorbed so easily by the market. It's going to be a mess when all those treasuries eventually get sold while the Treasury Dept is simultaneously issuing more debt.

Foreclosures hit record

http://money.cnn.com/2009/10/15/real_estate/foreclosure_crisis_deepens/?postversion=2009101507

Dollar to fall by half

Voltron says: Hat Tip to "Jeep"

Oct. 15 (Bloomberg) -- The dollar may drop to 50 yen next year and eventually lose its role as the global reserve currency, Sumitomo Mitsui Banking Corp.'s chief strategist said, citing trading patterns and a likely double dip in the U.S. economy.

"The U.S. economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger," said Daisuke Uno at Sumitomo Mitsui, a unit of Japan's third- biggest bank. "The dollar's fall won't stop until there's a change to the global currency system."

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_A5nqmw9Dq8

Wells Fargo's shadyness

http://www.businessweek.com/bwdaily/dnflash/content/oct2009/db20091014_008314.htm?campaign_id=yhoo

DOW 10,000, 7537 or 3,333

Voltron says: since the dollar has gone down about 25% and gold has trippled sine the Dow first hit 10k, the rise in the dow is merely nominal.

http://www.zerohedge.com/article/dow-10000-oh-wait-make-7537

Harrods to sell gold bullion

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/6328823/Harrods-to-sell-gold-bullion-for-first-time.html

How Marc Faber And John Paulson Are Playing The Inflation Trade

http://www.businessinsider.com/how-marc-faber-and-john-paulson-are-playing-the-inflation-trade-2009-10

60% of borrowers underwater

http://ftalphaville.ft.com/blog/2009/10/14/77561/majority-of-current-rmbs-borrowers-underwater-fitch-says/

Housing risks still lurk even as buyers return

http://news.yahoo.com/s/nm/20091012/ts_nm/us_usa_housing

Home values expected to fall 10% nationally

David H. Stevens, head of the Federal Housing Administration, told a panel at the Mortgage Bankers Association convention at the San Diego Convention Center that all signs point to a further 10 percent drop in home values by the first quarter of next year.

Many economists believe unemployment will continue to grow until next year, even if the recession is ending.

http://www3.signonsandiego.com/stories/2009/oct/13/home-values-expected-fall-10-nationally/?business&zIndex=181662

Dollar loses reserve status to yen & euro

"[Federal Reserve Chairman Bernanke] is in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."

http://www.nypost.com/p/news/business/dollar_loses_reserve_status_to_yen_hFyfwvpBW1YYLykSJwTTEL

US home rescue plan delaying, not solving crisis

http://www.reuters.com/article/marketsNews/idCNN1249572220091013

Single Best Investment in History = 258,449%

By Barry Ritholtz - October 12th, 2009, 11:00AM
The single best investment -- in terms of greatest return on invested dollars -- has been the lobbying efforts of the major banks and finance firms.

They spent $114.2 million dollars in contributions toward the 2008 election, according to the the nonpartisan Center for Responsive Politics. The companies that have been awarded taxpayers' money from Congress's bailout bill spent $77 million on lobbying and $37 million on federal campaign contributions, the Center finds.

These firms political activities have yielded them $295.2 billion from Recapitalization, TARP and other assorted bailouts.

The return on investment: 258,449 percent.

http://www.ritholtz.com/blog/2009/10/single-best-investment-in-history-258449/

It's Official, Central Banks Are Fleeing The Dollar

http://www.businessinsider.com/its-official-central-banks-are-fleeing-the-dollar-2009-10