Daily Wrap – 11/6/2009

jrmi — Sat, 07 Nov 2009 03:07:07 +0000

The 25 Billion Dollar Secret: The NY Fed, Goldman & The AIG Cover-Up – http://www.businessinsider.com/the-25-billion-dollar-secret-the-ny-fed-goldman-and-the-aig-cover-up-2009-11

Report: 237 millionaires in Congress (That’s 44% of Congress) - http://www.politico.com/news/stories/1109/29235.html

Meltdown 101: What to know if your bank fails

jrmi — Thu, 05 Nov 2009 21:41:28 +0000

(With bank failures on the rise, and a bankrupt FDIC, it is probably time to be sharpening our pencils on this topic. There are currently at least 416 banks on the FDIC’s problem watchlist. You can check on your own bank’s health online at http://www.bankrate.com or http://www.veribanc.com The following article explains what you should do if your bank suddenly fails. – JR)

By EILEEN AJ CONNELLY

NEW YORK (AP) – Dozens of banks have failed this year. What do you need to know if yours is next?

The number of bank failures has reached 115 since January – more than four times the total for 2008 and the most since the savings and loan crisis in 1992. And most experts expect problems caused by unpaid loans to force many more closures in the coming years, mostly among small, community-based banks.

Banks are typically shut down late Friday afternoon. That gives the Federal Deposit Insurance Corp. time over the weekend to handle the shutdown, which most often involves transferring deposits to another bank that is taking over the failed institution. The first sign of failure consumers see may be a closure notice on the bank’s door.

The impact of the bank failures on consumers has been minimal, but rumors about what can happen are rampant. The FDIC has also warned of dozens of scams that try to take advantage of consumers who don’t understand the process.

So what do bank customers need to know, in case their bank goes under?

Here are some questions and answers.

—

Q: Why would a bank be closed by regulators?

A: State or federal regulators can decide to close a bank if it is in danger of being unable to meet its obligations to depositors and others – basically, if it looks like it’s going to run out of money.

Most of the banks closed in the past year have suffered because the housing crisis and the recession have led consumers and businesses to stop paying off mortgages, credit cards and other loans. Banks must set aside money to cover such losses, and they become unstable if these reserves fall.

Q: How does a customer know if a bank is covered by FDIC insurance?

A: Banks usually have a sign on the door with the FDIC logo, and also frequently use the logo on account statements and other correspondence.

The FDIC has a tool called “Bank Find” on its Web site, , where a customer can enter a bank name and address to make sure it is insured. Internet-based banks are eligible for FDIC insurance, and are listed on the Web site as well.http://www.fdic.gov

Q: What exactly does the FDIC insure?

A: The FDIC covers money deposited in savings accounts, checking accounts and certificates of deposit up to $250,000. But that limit can apply to the same person in several different ownership categories, like single, joint, held-in-trust and retirement accounts.

So, for example, if a woman has two savings accounts totaling $200,000 in her own name, plus two joint accounts that each have $100,000, plus two accounts with $75,000 held in trust for her children, and a $90,000 IRA, all of these deposits would be covered because no one ownership category tops the limit.

Q: What doesn’t the FDIC insure?

A: Money in mutual funds, annuities, stocks, bonds or other investment products is not covered, even if those investments were bought through an insured bank.

The contents of a safe deposit box are also not FDIC insured, but may be covered through a homeowner’s or renter’s insurance policy.

When a bank fails, in most cases, the bank that takes over will keep branches operating and allow access to safe deposit boxes. If no other bank acquires the failed bank, the FDIC will send a letter to boxholders with instructions for removing their property.

Q: How long does it take for the FDIC to pay people back?

A: In most cases, another bank takes over the closed bank’s deposits, and ATM cards, debit cards and checks continue to work until the new bank transitions customers to its systems.

If the FDIC can’t find another bank to take over, the agency uses its insurance fund to make payouts to the failed bank’s customers. The law requires that deposits be paid out “as soon as possible” after an insured bank fails. That has typically been just a few days after the bank closes. In most of these cases, the FDIC will provide new accounts at another insured bank, but it will issue a check to each depositor if new accounts can’t be arranged.

Q: Will the FDIC contact customers of a failed bank?

A: The FDIC notifies each depositor in writing when a bank fails, using the depositor’s address on record with the bank. This notification is mailed immediately after the bank closes. The FDIC never sends e-mails directly to consumers, and has warned about numerous scams sending fraudulent e-mails that appear to be sent by the agency. The FDIC also sets up a toll-free number and a Web site for customers to access.

When the failed bank is acquired by another bank, depositors get a notice in the mail from the new bank as well, usually with the first bank statement after the takeover.

Q: What if someone “banks” at a credit union?

A: The National Credit Union Administration, a U.S. government agency, provides members of these nonprofit institutions insurance up to $250,000 through the National Credit Union Share Insurance Fund, much the way the FDIC covers bank deposits. So far this year, 19 credit unions have failed.

Like the FDIC, the NCUA will assume control over a federal credit union that is unable to continue operating on its own, if it cannot find another credit union to serve the failed institution’s members. There are a handful of state-chartered credit unions that are not covered by NCUSIF, but have their own insurance.

Original Link: http://apnews.myway.com/article/20091031/D9BLPNE01.html

Daily Wrap – 11/5/2009

jrmi — Thu, 05 Nov 2009 19:54:17 +0000

Fed Pledges to Keep Rates Low for ‘Extended Period’ – http://www.bloomberg.com/apps/news?pid=20601068&sid=aiLPrCPDjWOQ

Central banks lead subtle shift away from dollar – http://www.reuters.com/article/ousivMolt/idUSTRE5A25KO20091103?rpc=401&=undefined&sp=true

Silver set to Soar as it did in the 1970’s – http://news.silverseek.com/SilverSeek/1257267140.php

CNBC Catches On… Begins Recommending Stable Foreign Currencies as an Inflation Hedge – http://www.cnbc.com/id/33289478

And in other news…

The Online Mission field: 1 in 1,000 Internet searchers is looking for information about God – http://www.christianpost.com/article/20091022/scholar-churches-can-use-internet-to-reach-non-seekers/index.html

CDC: Abortion Kills More Black Americans Than the Seven Leading Causes of Death Combined – http://cnsnews.com/news/article/55956

November JRMI Webinar: Explosive Profits in Foreclosures (REGISTER FREE)

jrmi — Thu, 05 Nov 2009 05:36:27 +0000

Sometimes, it can seem the world is spinning out of control. While our world is certainly on a collision course with our Biblical destiny, as Christian believers, we can always find comfort in the message found in God’s Word. When we “seek first the Kingdom of God and His righteousness, ” God promises to be our source and shelter. Today, more than ever, people are searching for answers to the problems facing our world. At JRMI, we are boldly confronting the lies of the age with the truths found in the Holy Bible. Our mission here at JRMI is to “educate, equip, and empower” Christian believers on Geopolitical, Economic, and Cultural trends, and how they will impact them and the global church. It’s a very big job, but thankfully we serve a very big God who is “able to supply all of our needs in Christ Jesus.”

One of our favorite ways to “educate, equip, and empower” believers is through monthly online presentations, known as webinars. The next JRMI webinar is scheduled for two Friday evenings in November, (11/13 & 11/20). These 90 minute webinars will be hosted online and will contain some very important information to help you become a better manager of the money that God has placed into your life. The topic of our November webinar is entitled: “Explosive Profits in Foreclosures.”

These webinars will be held on Friday evening at 7:00pm (Central Standard Time.) I urge you to register to attend these special webinars. You can register for free by clicking here.

See you Friday, Nov. 13 at 7:00pm!

Jerry Robinson

Daily Wrap – 11/4/2009

jrmi — Thu, 05 Nov 2009 04:50:00 +0000

Real Estate Price Plunge Makes U.S. Homeownership Perilous Path? – http://www.bloomberg.com/apps/news?pid=20603037&sid=a5Mu8v6dknLo

October Personal Bankruptcies Highest Since 2005 Law Changes – http://www.bloomberg.com/apps/news?pid=20603037&sid=a9eOFk1X3uoQ

India Buys 200 Tons Of Gold And Moves From The Dollar – http://247wallst.com/2009/11/03/india-buys-200-tons-of-gold-and-moves-from-the-dollar/

India dumps dollars for IMF gold – is China next in line? – http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=91828&sn=Detail

Beware the gold bubble? – http://money.cnn.com/2009/10/06/pf/gold_investing_bubble.fortune/index.htm?postversion=2009100704

Daily Wrap – 11/3/2009

jrmi — Tue, 03 Nov 2009 21:54:56 +0000

Gold surges to new record high – http://www.breitbart.com/article.php?id=CNG.4dadcffd230970c1a66462397286ee1f.381&show_article=1

When to Sell Your Gold - http://dailyreckoning.com/when-to-sell-your-gold/

Why your portfolio should be braced for another crash – http://www.moneyweek.com/investments/stock-markets/brace-yourself-for-another-market-crash-94504.aspx

The Real Pending Crisis: Public Pensions – http://townhall.com/columnists/BruceBialosky/2009/11/02/the_real_pending_crisis_public_pensions

AP sources: House health bill totals $1.2 trillion – http://news.yahoo.com/s/ap/20091102/ap_on_bi_ge/us_health_care_overhaul

Collapse of the Greenback?: Will the Dollar get an “Arab Oil Shock?” – http://www.engdahl.oilgeopolitics.net/1973_Oil_Shock/Greenback_Collapse/greenback_collapse.html

Half of US kids will get food stamps, study says – http://www.breitbart.com/article.php?id=D9BNKH3O1&show_article=1

Daily Wrap – 11/2/2009

jrmi — Tue, 03 Nov 2009 02:32:24 +0000

Nine U.S. banks seized in largest one-day haul - http://www.reuters.com/article/wtUSInvestingNews/idUSTRE59U05420091031?pageNumber=2&virtualBrandChannel=0

Soros, Ross: Commercial Real-Estate Crash Is Coming And It’s Going To Be Terrific – http://www.businessinsider.com/henry-blodget-soros-ross-commercial-real-estate-crash-is-coming-and-its-going-to-be-terrific-2009-11

U.S. Inflation to Appear Next in Food and Agriculture – http://inflation.us/foodinflation.html

Marc Faber Says Gold a Bargain Compared to S&P 500 Stocks – http://www.marketoracle.co.uk/Article14660.html

James Turk: Take the Long View on Gold and Silver – http://goldmoney.com/commentary-take-the-long-view-for-gold-and-silver.html

Richard Russell: Why you must hold gold for the long term… – http://www.thedailycrux.com/content/3264/Gold

POLL: Capitalism, democracy losing favor in ex-Soviet bloc – http://www.breitbart.com/article.php?id=CNG.69105fc6eae7b98bc224a2a77ee79cd8.4c1&show_article=1

Water rationing for Venezuela’s capital city – http://www.breitbart.com/article.php?id=CNG.ad409ca172435301fb479b62661e070f.361&show_article=1

Daily Wrap – 11/1/2009

jrmi — Sun, 01 Nov 2009 15:38:12 +0000

Federal regulators close 9 banks; Brings total to 115 banks – http://apnews.myway.com/article/20091031/D9BLQNS83.html

Meltdown 101: What to know if your bank fails – http://apnews.myway.com/article/20091031/D9BLPNE01.html

Fannie Mae: Delinquencies Increase Sharply in August – http://www.calculatedriskblog.com/2009/10/fannie-mae-delinquencies-increase.html

Option ARMs Enter the Eye of the Hurricane - http://www.doctorhousingbubble.com/option-arms-enter-the-eye-of-the-hurricane-the-189-billion-recast-problem-targeted-directly-at-the-california-housing-market-of-189-billion-in-securitized-option-arms-109-billion-in-california/

How Banks Will Fare in a Commerical Real Estate Crash – http://www.minyanville.com/articles/banks-niagra-bancshares-privatebancorp-gartman-signature-lending-commerical/index/a/25153

Are the Caymans Broke? – http://www.sovereignsociety.com/2009ArchivesSecondHalf/101609AretheCaymansBroke/tabid/6061/Default.aspx

Asian nations look to ‘lead world’ with possible EU Style Asian Bloc

jrmi — Fri, 30 Oct 2009 17:49:00 +0000

(Here at JRMI, we are vigilantly monitoring the geopolitical and economic trends and the risks they pose to the believer. I believe that in our age of global integration, our generation is going to witness some amazing political and economic coordination. Case in point is this current push for an “Asian Union,” similar in style to the current “European Union.” In addition to a coming Asian Union, I fully expect to see an “African Union” as well as a “Middle Eastern Union.” Stay tuned as I will have a lot to say soon about this Middle Eastern Union and how it will affect everything related to Biblical prophecy and to the global economy. - JR)

Asian nations discussed plans at a major summit Saturday to “lead the world” by boosting economic and political cooperation and possibly forming an EU-style community.

The prime ministers of regional giants China and India also looked to foster unity on the sidelines of the summit in Thailand after months of trading barbs over long-standing territorial issues.

But nuclear-armed North Korea and military-ruled Myanmar were also set to top the agenda in the royal beach resort of Hua Hin, underscoring the challenges still facing the region.

The summit groups the 10-member Association of Southeast Asian Nations (ASEAN) with regional partners China, Japan, South Korea, India, Australia and New Zealand.

Japan’s new Prime Minister Yukio Hatoyama said a proposed East Asian community involving all 16 countries should aspire to take a leading role as the region makes an early rebound from the global economic crisis.

“It would be meaningful for us to have the aspiration that East Asia is going to lead the world and with the various countries with different regimes cooperating with each other towards that perspective,” Hatoyama, who took office last month, told the Bangkok Post newspaper.

He described Japan’s alliance with the United States as the cornerstone of its foreign policy, but said the region should “try to reduce as much as possible the gaps, the disparities that exist amongst the Asian countries”.

China would “doubtless” grow further, particularly economically, “but I do not necessarily regard that as a threat,” Hatoyama said.

Officials said separately that East Asian nations would carry out a feasibility study for a huge free trade zone covering ASEAN, China, Japan and South Korea and a larger group involving India, Australia and New Zealand.

Increased integration has been a recurring theme of the meetings in Thailand, as the rapidly changing region seeks to capitalise on the fact that it has recovered more quickly from the recession than the West.

ASEAN leaders have been discussing plans to create their own political and economic community by 2015.

But cross-border spats have continued to dog the summit, with host nation Thailand dragged into a war of words with Cambodia and India and China seeking to resolve their differences.

Chinese Premier Wen Jiabao and his Indian counterpart Manmohan Singh held “productive” talks on the sidelines of the summit Saturday but did not discuss their spat over territorial issues, officials said.

“We have reached important consensus on promoting bilateral ties,” Wen was quoted as saying by the Chinese state news agency Xinhua as the talks opened.

Beijing has voiced its opposition to a recent visit by Singh to Arunachal Pradesh, an Indian border state at the core of the dispute, and to a planned visit there next month by the Dalai Lama, the exiled Tibetan spiritual leader.

Arunachal Pradesh and the Dalai Lama were not discussed at Saturday’s meeting, an Indian delegation official said. The two nations fought a border war in 1962.

Human rights issues have also marred the summit. A widely criticised rights body officially launched by ASEAN on Friday was due to have its first ever meeting on Saturday.

The bloc was caught up in a row on Friday when leaders barred several activists from meeting them as previously arranged.

Meanwhile Thailand and Cambodia remained at loggerheads over the fate of fugitive former Thai premier Thaksin Shinawatra, after Cambodian Prime Minister Hun Sen bizarrely offered him a job as his economic adviser.

Around 18,000 troops and dozens of armoured vehicles have been deployed in Hua Hin after it was twice postponed by anti-government protests, with another 18,000 on standby or on duty in Bangkok.

The leaders are expected to sign a host of agreements this weekend on economic and other issues including climate change, disaster management, communications and food security in the rapidly changing region.

Original Link: http://www.breitbart.com/article.php?id=CNG.314f8f63df41800c448cd89e0a88dd31.4e1&show_article=1

Bill Gross: Assets Are $15 Trillion Overvalued And Fed Will Keep Rates At 0% Forever To Keep The Fantasy Alive

jrmi — Fri, 30 Oct 2009 16:59:03 +0000

(Few people understand the investment world like PIMCO Fund manager Bill Gross. He is one of the top money managers in the world. His insights into this crisis are definitely worth noting.)

PIMCO’s Bill Gross with a great monthly letter. Here are the key points:

Over the past 30 years, paper asset prices rose 2X as much as they should have based on economic fundamentals
This was the result of leverage
The asset price rise in turn pumped up the economy’s fundamentals (Soros’s reflexivity)
The government wants to restore the “old normal” (2007) not the “new normal” (slower growth as asset prices return to trend)
Therefore… The Fed will keep rates at 0% for at least 18 months into sustained 4% growth
Next year, when the inventory restocking effect wears off, 4% will be tough

A cold wind from the future blows into my nighttime bedroom, more often than not during those midnight hours when fear dominates and hope retreats to a netherworld. This wind is a spectre, an oracle of darkness and eventual death, not easily dismissed. Once merely a whisper, its decibels intensify with the advancing years. It will be heard, this reaper – this grim reaper, yet in the nights when it howls the loudest I fight back, silently screaming for it to get out, to leave me alone, to let it all be a bad dream. It never is. Shakespeare’s Macbeth expressed it more subtly: “Out, out, brief candle!” Yet the finer words provide no solace; the final act is always the same.

Those of you in your sixties and older know of what I speak; even during daylight hours you read the obits and notice that contemporaries have passed into the beyond. Those of you much younger must wonder what has come over me, yet I was young once too. I remember as a teenager camping out under the stars with friends wondering aloud at the mystery of it all, knowing the reaper was far off in the distance, so far away that death was more a philosophical discussion point than an impending reality. In my thirties, I recall standing in front of a mirror in my physical prime and instructing my image that I would never grow old, that I somehow would live forever, that I, the me, the ego, would be eternal. Now when I face the glass my eyes avoid the unmistakable conclusion: I am everyman – everyone that ever was and ever will be. This world will outlast me.