Saturday, April 3, 2010

April 3.2010 commentary.

Today will be short.
 
Yesterday, they released the non farm payrolls.  Here are the figures:
 
 
 
Note:  the huge 81000 gain in jobs from the Birth/Death adjustment.  This number is a plug number and
 
hypothesizes that when one loses his/her job  (death) they go in business and create jobs in the economy
 
(birth).  It is a total phony.
 
 
However, the jobs number caused a little panic in the bond market with the long bond falling to 114.87
 
 
 
The FDIC decided to give themselves a break this holiday weekend and no banks lost their lives.
 
And now for the COT report: from Gold Seek:
 
 

Friday, April 2, 2010

Committment Of Traders Report For This Week

Despite the holiday, the Commitment of Traders reports were released this afternoon. This post takes the place of my normal discussion of them, in the regular end-of-week commentary on the the gold and U.S. Dollar Index markets. Both reports cover positions as of last Tuesday, March 31st. That was the day before the two-day rally in gold, and the end of a relief rally for the greenback.

The COT for gold, as graphed here, shows a real shrinkage overall. Total open interest declined, by 12,326 contracts or 3.00%, and the number of non-commercial longs shrunk by 11,598 contracts or 5.24%. The big decliner in the long category was non-reportable positions. Bucking the trend, commercial longs increased markedly: by 10,968 contracts, or 8.81%. Given how gold performed over the rest of the week, it looks like some on the non-commerical side was gotten the better of after Tuesday.

On the short side, the non-commercial category shrunk too, but not by that much: 1492 contracts, or 3.97%. This shrinkage does add to the impression that non-commercial shorts tend to be cannier than non-commerical longs. Commerical shorts shrunk by 5,164 contracts, or by a mere 1.48%. As with the long side, the big shrinkage in percentage terms was in non-reportable contracts.

For the U.S. Dollar Index, as graphed here, total open interest ballooned for the second week in a row. From March 23rd's 49,119 contracts, March 31's increased to 58,227 for an increase of 9,108 contracts or 18.5%. Interestingly, both commercial and non-commercial long positions expanded. The former went up by 913 contracts, or 16.4%, and the latter went up by 7,658 contracts or 20.0%. Both categories were hit subsequently by Wednesday's and Thursday's fall in the Index.

Also interestingly, the shorts in both commerical and non-commerical categories expanded. The former went up by 5,099 contracts, or 12.5%, and the latter went up by 4,692 contracts or a brow-raising 76.2%. In the U.S. Dollar Index market, the non-commercial shorts certainly picked up more than their share of the slack created by the expansion of longs in both categories.

The impression left for both is an old saw of the commodities market: the shorts tend to know what they're doing more than the longs. One quirk of the U.S. Dollar Index category is the commerical longs being caught out by downturns as well as the non-commericals.

0 comments:

In gold, the large speculators were sunk by the cartel raid losing 11,598 contracts. Interesting those longs were picked up by our raptor banks  (the intermediate banks)l
The large commercials covered some of their shorts by 5164 contracts.  not much covering.
 
In silver the same story with JPMorgan continuing to add to its short position in silver.
 
 
We will report to you as always on Monday.
 
 
 
 

April 3.2010 commentary.

Today will be short.
 
Yesterday, they released the non farm payrolls.  Here are the figures:
 
 
 
Note:  the huge 81000 gain in jobs from the Birth/Death adjustment.  This number is a plug number and
 
hypothesizes that when one loses his/her job  (death) they go in business and create jobs in the economy
 
(birth).  It is a total phony.
 
 
However, the jobs number caused a little panic in the bond market with the long bond falling to 114.87
 
 
 
The FDIC decided to give themselves a break this holiday weekend and no banks lost their lives.
 
And now for the COT report: from Gold Seek:
 
 

Friday, April 2, 2010

Committment Of Traders Report For This Week

Despite the holiday, the Commitment of Traders reports were released this afternoon. This post takes the place of my normal discussion of them, in the regular end-of-week commentary on the the gold and U.S. Dollar Index markets. Both reports cover positions as of last Tuesday, March 31st. That was the day before the two-day rally in gold, and the end of a relief rally for the greenback.

The COT for gold, as graphed here, shows a real shrinkage overall. Total open interest declined, by 12,326 contracts or 3.00%, and the number of non-commercial longs shrunk by 11,598 contracts or 5.24%. The big decliner in the long category was non-reportable positions. Bucking the trend, commercial longs increased markedly: by 10,968 contracts, or 8.81%. Given how gold performed over the rest of the week, it looks like some on the non-commerical side was gotten the better of after Tuesday.

On the short side, the non-commercial category shrunk too, but not by that much: 1492 contracts, or 3.97%. This shrinkage does add to the impression that non-commercial shorts tend to be cannier than non-commerical longs. Commerical shorts shrunk by 5,164 contracts, or by a mere 1.48%. As with the long side, the big shrinkage in percentage terms was in non-reportable contracts.

For the U.S. Dollar Index, as graphed here, total open interest ballooned for the second week in a row. From March 23rd's 49,119 contracts, March 31's increased to 58,227 for an increase of 9,108 contracts or 18.5%. Interestingly, both commercial and non-commercial long positions expanded. The former went up by 913 contracts, or 16.4%, and the latter went up by 7,658 contracts or 20.0%. Both categories were hit subsequently by Wednesday's and Thursday's fall in the Index.

Also interestingly, the shorts in both commerical and non-commerical categories expanded. The former went up by 5,099 contracts, or 12.5%, and the latter went up by 4,692 contracts or a brow-raising 76.2%. In the U.S. Dollar Index market, the non-commercial shorts certainly picked up more than their share of the slack created by the expansion of longs in both categories.

The impression left for both is an old saw of the commodities market: the shorts tend to know what they're doing more than the longs. One quirk of the U.S. Dollar Index category is the commerical longs being caught out by downturns as well as the non-commericals.

0 comments:

In gold, the large speculators were sunk by the cartel raid losing 11,598 contracts. Interesting those longs were picked up by our raptor banks  (the intermediate banks)l
The large commercials covered some of their shorts by 5164 contracts.  not much covering.
 
In silver the same story with JPMorgan continuing to add to its short position in silver.
 
 
We will report to you as always on Monday.
 
 
 
 

Thursday, April 1, 2010

April 1.2010...extremely important..(.no april fools)

Good evening Ladies and gentlemen:
 
Before going into the heart of the day's events, the Treasury released late today a huge increase in the federal debt :
 
The last 3 days are as follows:
 
12.686 trillion
12.684 trillion
12.773 trillion
 
the gain in one day was 89 billion dollars.
 
The month started at 12.507 trillion and ends at 12.773
for a gain of  266 billion.  The debt ceiling is 14.3 trilllion dollars.  We are 1.52 trillion dollars away from debt ceiling.
At the rate they are printing money it will take only 5.7 months to reach debt ceiling or it will be reached by Oct 1.2010, the first
day of the new fiscal year.
 
They wanted it to last past the upcoming Nov. elections.  Not a chance!
 
 
OK lets go to the regular part of the commentary.
 
Gold closed up by 11.80 to 1125.10 and silver rose by 35 cents to 17.87.  Silver hit a brick wall at 18.00 as this is a huge
resistance level after the 17.50 line was penetrated in full force.
 
The open interest on the gold comex rose by a huge 4300 contracts to 471005.  The silver comex OI rose by
1383 contracts to 114,788.
 
Lets go to the gold and silver inventory at the comex.
 
First the inventory levels:
 
 
COMEX Warehouse Stocks April 1, 2010

SILVER

443,447 ozs withdrawn from the dealer's (registered) inventory 
303,838 ozs withdrawn from the customer (eligible) inventory 
Total dealer inventory 53.79 Mozs 
Total customer inventory 62.05 Mozs 
Combined Total 115.84 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category 
1,383 ozs withdrawn from the customer (eligible) category 
Total dealer inventory 2.35 Mozs 
Total customer inventory 7.67 Mozs 
Combined Total 10.02 Mozs

 

Notes:

 

In silver 443447 oz left the dealers inventory  answering in a small way, the huge number of oz standing.  As I pointed out to you yesterday,

25 million oz of silver are waiting for the silver to arrrive.  Today .443 million oz was withdrawn from the dealer inventory

 

Also 303,838 oz of silver in a continuing trend left the customer inventory at the comex.Something is spooking silver owners..(maybe the unlawful leasing of owners silver without their knowledge?)

 

In gold, no action to speak of.

 

 

OK lets go to the deliveries:

 

Since April is the delivery month for gold, lets see what happened:

 

There were 2,786 delivery notices issued in the APR gold contract. The APR gold contract total for the month is 10,681 notices or 1,068,100 ozs.

 

Note:  we got 2786 notices issued or 278600 oz of gold.  The total number of oz for the two days number 10,681 contracts or 1.068 million oz.

 

What is left?

 

The Open Interest in the APR gold contract is 7,336 or 0.73 Million ozs.

 

we have 7336 contracts or 733600 oz of gold left to be served.

 

There is no question that option holders added considerably to todays total.  This number is very very large and should be very disturbing to the comex.

 

Adrian Douglas comments:

The Open Interest in the APR gold contract is 7,336 or 0.72 Million ozs. Along with the already issued delivery notices the gold demand in April could be 1.8 Mozs or 76% of the dealer inventory!
Cheers 
Adrian

 

My commentary:  I will need a few days of gold notices to determine exactly who and how much are standing.  Needless to say, the number of gold oz standing is huge.

 

Lets go to silver.  Remember that April is an off delivery month for silver and it only represents options exercised for silver metal.  All options exercised generally go for physical metal.

The usual amt of silver on an off month is around 1 million oz for the entire month.

Lets see what we have so far:

 

There were 19 delivery notices issued in the APR silver contract. The total delivery notices for the month in silver stand at 273 or 1.4 Mozs.

 

Already we have 1.4 million oz of silver exercised for metal.  This must disturb the comex boys as well as the huge amt of gold notices.

It looks like 29 contracts remain to be served or  145000 oz.

 

Lets go to the big gold story of the day:

 

Zero Hedge…

Submitted by Tyler Durden on 03/31/2010 23:31 -0500

UK Treasury Relases FOIA On Gordon Brown's 1998 Gold Sale, Catches Tony Blair Lying, Questions US Treasury's Good Delivery Standards

One of the bigger stories in the UK over the past several days, has been the increasing pressure on Prime Minister Gordon Brown to justify his sale of 395 tons of gold in 17 auctions in the period from 1998 through 2002, when Brown was Chancellor of the Exchequer, a role identical to the one Tim Geithner now performs in the US as Treasury Secretary. The issue is that in the abovementioned period, gold was trading at the rock bottom prices of the past two decades, and as such his rush to sell is estimated to have cost UK taxpayers £6 billion. One reason previously given to Parliament, to explain the transactions from Treasury ministers and Tony Blair was that the sale was made 'on the technical advice of the Bank of England.'

Today the UK Treasury has released long-withheld FOIA documents which disprove this claim, and indicate that in fact the BOE was if not completely against selling the bullion then certainly waiting until the price improved. Furthermore, as the Daily Mail reports, "A source close to the Bank of England said last night: 'It was not our decision. It was their decision and we simply provided technical advice. Then it was up to them.'" Yet, in light of recent LBMA manipulation revelations by GATA, it was most likely the association itself and its member banks which pressed the then relatively new Chancellor to do something against the interest of his people, potentially with promises of further rank extension in the "public services" arena. So far, they have not disappointed.
As part of the FOIA, (Full document attached below) it becomes clear that Brown attempted at least 4 tried to persuade the BOE to proffer a joint proposal from the Treasury and the Bank Of England as pertains to English gold sales in the late 1998 period. And even as the FOIA submission is now making the round, there is still a critical redaction. To wit, from the Daily Mail:
Two days before Christmas 1998 - just a month before the sale was announced - a senior Treasury official wrote to the department's then permanent secretary Gus O'Donnell: 'The Chancellor is keen that officials at the Treasury and the Bank work together to produce a joint proposal. As I understand it the latest proposal is not a joint one.
'The Chancellor needs to know the status of the proposal, what the difficulties are in drawing up a joint proposal, how you think we can move forward in achieving a joint proposal.'
Three weeks later Mr Brown met the then Bank Governor Lord George for lunch to discuss the plan. But the outcome of the talks is unclear because the Treasury has blacked out a key section of the only note referring to it.
Lord George offered only the most lukewarm endorsement of the decision at the time, telling MPs it was a 'perfectly reasonable portfolio decision'.
If he had refused to agree to the sale he would almost certainly have had to resign.
Surely, Gordon Brown, facing with some very daunting poll numbers ahead of upcoming elections, will now have even more explaining to do.

Yet what mostly caught our attention was Annex #29 to a Bank Of England paper from September 28, 1998, in which the following was said:

The US treasury sold gold in two spells, two auctions of 23 and 15 tonnes in 1975, which were not continued in 1976 as the IMF auctions were announced and the spot price fell; a larger programme of 491 tonnes during 1978-1979 as the gold price rose sharply. Indeed the second programme was extended three times as demand for gold continued to push up the spot price. The US Treasury used a multi-price auction system initially with open bids, but switched to closed bigs by the end because open bids were causing market disruption [can't have a transparent market now, can we]. The auctions in 1979 offered two grades of gold: 995 fine and 900 fine. It is not clear whether this was a market-driven switch, or whether it reflected the US Treasury's preference.

Now correct us if we are wrong, but (London) Good Delivery standards by the LBMA have called for 995 and higher fineness since time immemorial. How is it that the US Treasury decided to dilute the content of its gold dispositions precisely at the time when gold prices were surging. And, more relevantly, why? Recall that in the period January 1979 - January 1980 gold price/toz went from $240 to $850! Did the US, for whatever reason forced to sell into the run up, need to dilute gold holdings due to a massive shortage of physical? By doing so, did the UST force buyer to sign "big boy" letters fully acknowledging that they were getting less than Good Delivery gold? Was this 10% dilution merely the first step in what Adrian Douglas recently highlighted would be the transition of gold claims holders into general unsecured creditors? If a 4x run up in gold forced the US Treasury to enact a 10% real dilution in gold, what would happen if gold surged 40x? Would the fineness of the adjusted "good delivery" drop to 100 or lower? Forget the LBMA and the threat of physical dilution -a much more relevant question is just how much of the alleged US gold holdings of 8133.5 tonnes is actually real. Surely, the question of just how much gold is there below the HSBC building in New York's Bryant Park, and below the FRBNY has never been more relevant.

Full HM-Treasury FOIA.

 

 

end.

 

Gordon Brown the former chancellor of the exchequer of England and now Prime Minister has lied to his nation about the sale of gold.  He originally told the world that the bank of England recommended the sale of the gold.  You will recall that the British auction for that gold allowed the lowest bid to win the tender.  This gold then went to the bankers to offset their gold shorts.

 

But now look at annex 29 of the freedom of information just received. Here we see for the first time usa gold that was sold through auction.

In the first program 23 and 15 tonnes of gold were sold in 1975.  However a larger program of a huge 491 tonnes of gold sold during 1978-1979.  The auction of 1979 offered two grades of gold .995 fineness

and the .9000 or as I often refer to it as coin-melt.  Another name for .900 gold is coin-melt!

 

London Good Delivery is  .995 finess as that is the only gold you can deliver.  The coin melt gold that was sold had to be refined at a London refiner or a Swiss refiner.

However what is important in this revelation, is that this gold had to come from Fort Knox. Fort Knox is the only facility in the world that has official reserves that is not .995 finess. Fort Knox took in roughly

6900 tonnes of coin-melt in 1933 as the double eagles and single eagles previously minted where melted down.  All gold coins handed in by not so clever Americans were also melted down.

The usa decided not to refine their gold and classified all of their holdings as official reserves.All of this gold moved into their new facility at Fort Knox in 1937.

If gold was sold in 1979-1980 I can assure you that gold has left usa shores, in the past 30 years, to keep the usa dollar propped up.

No wonder the refiners have been working overtime.  They are refining the usa gold coin melt as it is this gold that is seeping into the marketplace.

 

As my good friend, Don Jack often tells me:   it would appear that the gold at Fort Knox is less than stated.

If gold left in 1979-1980 it would also appear likely that gold has been disappearing from the largest gold facility in the usa.

The last official gold sale on record is 1974.  That "sale" was coin-melt gold and the purchaser immediately returned the gold to the usa.  The purchaser wanted London Good Delivery Gold.

Now for the first time we have two big sales occurring after 1974,  approximately 38 tonnes in 1975 and 491 tonnes in 1979.

You may recall that gold was skyrocketing in late 1979 and reached its pinnacle in January 1980.  The sale of gold was meant to thwart gold's rise.

 

Dave Kranzler who is quite knowledgeable on the physical side of gold comments:

 

Thursday, April 1, 2010

Is the U.S. Gold Stock Really There?

Funny how life comes full circle. I used to explain to anyone willing to listen years ago that the 8100 tonnes of gold reported as owned by the U.S. Treasury was not there - that it had been plundered thru leasing and sale transactions designed to keep a lid on the price of gold and prop up the value of the U.S. dollar.

Well now the favorite psuedo-congnoscenti blog of the market hoi polloi, Zerohedge.com, presents this:

Forget the LBMA and the threat of physical dilution - a much more relevant question is just how much of the alleged US gold holdings of 8133.5 tonnes is actually real. Surely, the question of just how much gold is there below the HSBC building in New York's Bryant Park, and below the FRBNY has never been more relevant.

Here's a link to the entire story: LINK

 

end.

 

Now you know why we did a freedom of information on the usa gold. Look at the knowledge we get by seeing the FOI from London.

 

Here is another story released from England today on the Freedom of information released on "Brown's Bottom":

 

Brown Defied Bank of England Warning Over His L6 Billion Gold Giveaway

By Jason Groves
Daily Mail, London
Wednesday, March 31, 2010

Gordon Brown rode roughshod over resistance from the Bank of England to order the disastrous selloff of Britain's gold reserves, secret papers have revealed.

Treasury documents released under freedom of information last night suggest that the Bank was reluctant to sign up to the sale of 395 tonnes of gold at rock-bottom prices in a series of auctions between 1999 and 2002…http://www.dailymail.co.uk/news/article-1
262683/Brown-defied-Bank-warnin...
-END-

 

Here are todays economic stories:

 

First the jobless picture is quite in line with expectations:

 

New U.S. jobless claims fall 6,000 last week

WASHINGTON, April 1 (Reuters) - The number of U.S. workers filing new applications for unemployment insurance fell as expected last week and a measure of underlying labor market trends hit a 1-1/2 year low, a government report showed on Thursday.

Initial claims for state unemployment benefits slipped 6,000 to a seasonally adjusted 439,000 in the week ended March 27, the Labor Department said.

Analysts polled by Reuters had expected claims to dip to 440,000 from a previously reported 442,000 the prior week, a number that was revised to 445,000 in Thursday's report.

A Labor Department official described the report as "fairly uneventful."

-END-

 

 

The Challenger Christmas reports on planned layoffs show the layoffs have stabilized. However they were still up for the month:

 

 

07:30 Mar Challenger job cuts 67.61K vs. 42.09K m/m 
* * * * *

Planned US job cuts up in March vs Feb -Challenger

NEW YORK, April 1 (Reuters) - The number of planned layoffs at U.S. firms rose in March, although planned job cuts for the first quarter were down sharply from a year ago, a report on Thursday showed.

Employers announced 67,611 planned job cuts last month, up from 42,090 the previous month, according to the report from global outplacement consultancy Challenger, Gray & Christmas, Inc.

The first-quarter total of 181,183 layoffs, however, is 69 percent lower than the 578,510 announced in the first quarter of 2009.

"The first quarter of 2009 really marked the peak of downsizing for this recession. Unfortunately, many people are still jobless and many businesses are still shuttered," John Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement.

The U.S. jobless rate is currently at 9.7 percent, and that level is expected to stay the same in Friday's U.S. government jobs report for March. The data is forecast to show an increase in nonfarm payrolls, while a report on the private sector on Wednesday showed job losses continued in March.

 

The following caused the Dow to rise 70 points on the day:

 

10:00 Mar ISM Manufacturing 59.6 vs. consensus 57 
* Prices Paid 75 vs. consensus 67
Feb ISM was 56.5
Feb Prices Paid 67

 

It seems that any good number is met with tremendous glee from Wall Street.

 

The following was ignored:

 

U.S. construction spending fell 4th straight month

WASHINGTON, April 1 (Reuters) - U.S. construction spending fell for a fourth straight month in February to the slowest rate in nearly 7-1/2 years as activity softened in every major sector from homebuilding to public construction projects.

Overall construction spending fell 1.3 percent to a seasonally adjusted annual rate of $846.23 billion following a revised 1.4 percent decline in January that previously was reported as a 0.6 percent decrease, the U.S. Commerce Department said on Thursday.

The February drop exceeded the 1 percent decline that economists surveyed by Reuters had forecast.

 

 

but the next stat is very important.  To have increased spending and to have life in the economy one must see commercial paper rise in quantity.  Lets see what we got:

US commercial paper market shrinks a 3rd week -Fed

NEW YORK, April 1 (Reuters) - The U.S. commercial paper market shrank for a third straight week as companies trimmed borrowing amid caution about economic recovery and continued replacing very short-term debt with longer maturity corporate notes and bonds, Federal Reserve data showed on Thursday.

For the week to March 31, the size of the U.S. commercial paper market, a vital source of short-term funding for companies' day-to-day operations, slipped $5.2 billion to $1.109 trillion outstanding from $1.114 trillion the previous week.

-END-

 

My goodness:  commercial paper shrank for the 3rd straight week.

This is why I am having trouble reading Wall Street and their recovery.

 

 

Gary Gensler is going to put position limits on energy.  I wonder if he has got the guts to place position limits on the precious metals.

Here is the story on the energy front:

 

Regulator seeks to rein in energy market trading by big Wall Street firms

By David Cho
Washington Post Staff Writer
Thursday, April 1, 2010; A10

The nation's commodities regulator is proposing to limit the vast amounts of oil, natural gas and other vital goods the world's biggest investment firms can buy and sell, seeking to eliminate the unfettered access these companies have had to energy markets for 20 years.

The rule would also force this highly lucrative trading into daylight, requiring for the first time that the public be told which companies have special permission to trade commodities with virtually no constraints.

By reversing course, the Commodity Futures Trading Commission, under its activist chairman, Gary Gensler, is trying to prevent the concentration of power in the hands of a few large businesses. For example, a single firm, the United States Oil Fund, was able to gain the rights to nearly one-fourth of all the publicly traded crude oil scheduled for delivery during one month last spring, the fund's head said in an interview.

Advocates of the commission's proposal have said the influx of Wall Street money has led to violent price swings. In 2008, the price of a barrel of crude oil leapt to a record of more than $147 and within months crashed to below $34. This volatility not only disrupts household budgets but also makes it hard for food manufacturers, airlines and other companies to get the goods they need when they need them, the advocates said.

Traditionally, commercial companies were the main players on the commodities markets, buying contracts for oil, for example, that guaranteed future delivery on a specific date for a locked-in price. But Wall Street banks eventually discovered that they could trade these contracts like financial securities and make money without ever taking delivery of the goods. Before long, the banks won exemptions from federal trading restrictions and were able to speculate on unlimited amounts.If a majority of the five-member panel approve the commission's latest proposal, the rule would dramatically scale back the exemptions given to firms such as Goldman Sachs, J.P. Morgan Chaseand Morgan Stanley. Although the government keeps the identities of the firms private, financial analysts have figured out some of them….http://www.washingtonpost.com/wp-dyn/conten
t/article/2010/03/31/AR2010033104104.html

 

end.

 

We finally got information from the Fed on assets purchased from Bear Stearns.  This is through the vehicle known as Maiden Lane I , II,  III:

 

Fed Reveals Bear Stearns Assets It Swallowed in Firm's Rescue

http://www.bloomberg.com/apps/news?pid=20601103&sid=aZA_RWY3IJ2I

« Market Value

Assets in Maiden Lane II totaled $34.8 billion, according to the Fed, which set their current market value in its weekly balance sheet at $15.3 billion. That means Maiden Lane II assets are worth 44 cents on the dollar, or 44 percent of their face value, according to the Fed.

Maiden Lane III, which has $56 billion of assets at face value, is worth $22.1 billion, or 39 cents on the dollar, according to the Fed's weekly balance sheet. A similar calculation for the Bear Stearns portfolio couldn't be made because of outstanding derivatives trades.

"The Federal Reserve recognizes the importance of transparency to its financial stability efforts and will continue to review disclosure practices with the goal of making additional information publicly available when possible," the New York Fed said in yesterday's statement.

Deal With Chase

The central bank said it reached agreement on "issues of confidentiality" for the assets with JPMorgan Chase, which bought Bear Stearns in 2008, and AIG. New York-based JPMorgan and AIG would incur the first losses on the portfolios. « END

 

end.

 

You will note that assets are now worth either 44 cents on the dollar or 39 cents on the dollar.  Remember a few months ago, the Fed Chairman revealed that the Fed has not lost a penny.

I guess he lied.

 

Now you know what bank assets are like if they have to conform to FASB.

 

OK lets see how individual states are doing :

 

This first story from Jim Sinclair is a real corker:

 

States shed government jobs as revenue plummets 
By CHRISTOPHER S. RUGABER

WASHINGTON — Pennsylvania, Michigan and Washington shed government jobs last month, a result of shrinking state tax revenue that economists fear could weaken the recovery.

State and local government jobs have traditionally provided a haven during economic downturns. But as states have struggled to close growing budget gaps, job cuts have spread.

That trend emerges from data on a dozen states that have released their employment figures in advance of a federal report Friday on state joblessness for February.

In Michigan, where the unemployment rate is 14.1 percent, the nation's highest, government jobs at all levels fell by 5,000. They accounted for one-third of the state's job losses.

Pennsylvania lost 2,200 government jobs. Minnesota lost 1,900 and Massachusetts 1,500.

Washington state shed 900 government jobs in February. And Wisconsin lost 2,100 government jobs, including 1,600 at the local level.

More…


end.

 

How are things in Missouri:

 

Governments delay tax refunds to help their bottom line 
By Chris Blank 
updated 3:10 p.m. PT, Wed., March. 31, 2010

JEFFERSON CITY, Mo. – Give people their money. It's the rallying cry of lawmakers around the country pushing back against states that are delaying tax refunds to shore up their budgets.

Holding on to the refunds allows states to use the money for other purposes, earn interest on it or simply wait until there's enough cash to cover the checks. But the cost can be an unhappy public.

"It's not the state's money, it's the people's money," said Missouri Rep. Jason Smith, R-Salem. "It's money they've overpaid to the state, and they deserve to get their money back in a prompt time."

More…

 
 
 
Lets see how things are shaping up in New York:
 

Here comes New York into the condition of a financial disgraced state of the USA.

Paterson delays payment of $2 billion to schools 
By Tom Precious 
Published: March 30, 2010, 4:44 pm

ALBANY — More than $2 billion in state aid payments to public school districts across the state are being delayed, possibly until June, because of the state's worsening financial crisis, Gov. David A. Paterson said Tuesday.

The governor's order, coming the day before the aid was to go out, left school districts scrambling, with talk of program cuts, delayed payments to vendors and possible layoffs if the expected state aid — approved a year ago in the 2009 budget — does not come soon.

Several school officials lashed out at the Paterson administration for giving just 24 hours' notice and shifting the state's cash-flow problems onto local districts. A top labor leader predicted some schools — especially lower-income districts that rely heavily on state aid — will have to cancel school days if they can't pay the bills.

The delay will cost the Buffalo school district $26 million it was expecting Tuesday.

The Paterson administration also sent word Tuesday to construction companies doing business with the state that road and other capital work will be delayed in the weeks ahead until a new state budget deal is reached at the Capitol.

More…

ShareThis

 
 
end.
 
 
 
Tomorrow is the release of the non farm payrolls.  However the markets are closed.  Gold will resume trading Sunday night.
 
I would like to wish all of you a very happy Easter .  I will report on Saturday on just the non farm numbers and the COT report.  It will be short.
 
bye for now
Harvey.
 

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