james Joyce Table
Good Afternoon Ladies and Gentlemen:
Gold closed down by 5.20 to 908.30. Silver fell by 22 cents to 17.50.
Early in the session, gold was beaten down by 11.00, seconds after a phoney jobs report was released. In that report, the unemployment rate came in at 5.7% and 52000 people lost their jobs.
The street was expecting 75000 so Wall Street rejoiced and the futures indicated that the Dow was going to rise by 100 points. Gold by 12:00 noon reached positive by 2.00 but fell when
With respect to the jobs report, many saw through the number and realized that many full time workers moved over to part time. The broad measure of unemployment called U 6 came in at 10.8% unemployed.
John Williams of ShadowStatistics revealed that by his calculations, unemployment hit 13.7% last month.
The chain stores are closing fast and furious, from Ann Taylor, Disney stores, Levitz Furniture, Foot looker..etc. you name it many are closing and throwing many out of work.
The Democrats wish to raise taxes on businesses. Republicans are stating “what business?””
Our famous actor turned politician , Arnold S. told the comptroller that all state employees will now be paid minimum wage. They number in the range of 200000. He also fired 20,000 workers.
The comptroller told
The open interest on the comex gold fell by 10,000. The open interest is now 430,000 with 10,000 contracts to be delivered. It looks like 420,000 is now the rock bottom OI where it is impossible to fleece anyone.
Silver’s Oi is now around 132000 and it too is at rock bottom.
The COT report released after the market showed commercials buying huge quantities of both silver and gold. This is also a good time that we reached bottom.
I emailed you earlier yesterday another bank failure…First Priority of Bradenton. Sun Trust took them over . Due to the speed of this, this must have been in the works for quite a while.
This bank is very small, with assets of only 200 million or so. The FDIC need to pony up 75 million dollars.
A few hours ago we heard that
Early in the session we heard from GM and they came in at a loss of 15.50 billion dollars of$ 27.00 per share. They have about 350 days of cash left as their burn rate is around 5 billion a quarter.
The following is very important :
07:22 UBS raises loss estimates for industry-wide, securitized option-ARMS
Wachovia has 122 billion of option ARMs (adjustable rate mortgages) that are starting to come due. Washington Mutual has 53 billion of the stuff and Bank of America has 25 billion. Countywide which it owns 100% but not as a merged company has the largest subprime, prime mortgages on the planet.
09:26 C Follow-up: Citi says SEC has issued a formal order of investigation (18.69)
The order relates to whether various provisions of the federal securities laws have been violated in connection with the sale of ARS. In addition, the company is responding to subpoenas from various state agencies, including those in
It seems now that many states are starting civil fraud proceedings against all of the players of asset backed commercial paper. These companies have no cash to settle so they are going to go through the rigorous process of the law. It is going to be interesting.
The gold shares fell badly as the shorters continued with reckless abandon. The gold/XAU is at an all time high of 5.60. The ratio was only 5.0 when gold was trading at 250.00. The XAU contract was at a low of 48.00. Remember at 250.00 gold it was impossible for any miner to make money.
It looks like it is hard for any miner to make money with gold at 900 because of the high cost of oil. It looks like the cartel need to have gold go to higher ground. The cartel need the miners to supply the gold so they can cover their gold forwards.
Speak to you on Monday.