The Golden Truth: Look Out Below - Mortgage Purchase Applications Crash...

Wednesday, May 19, 2010

Look Out Below - Mortgage Purchase Applications Crash...

Applications for mortgages to purchase homes plunged 27.1% last week vs. the previous week. This follows a 9.5% plunge the week before that. The purchase index is now 24% below the same week last year and is the lowest in the survey since May 1997. The refinancing index increased, benefitting from the lower mortgage rates which have resulted from the massive flow of money out of the stocks and into the bond market (out of the fire and into the frying pan?). Here's the news link from the Mortgage Bankers Association: Yikes.

Obviously this does not support the increase in housing starts reported earlier in the week. It leads one to wonder if the National Association of Homebuilders numbers are fraudulent, or if new homebuilders are taking advantage of the extreme moral hazard that the policies of the Obama Administration (Geithner, Summers, et al), in conjunction with the Federal Reserve, have injected into our system with their massive tax subsidies for homebuyers and trillions in "quantitative easing."

Don't believe any of the data being released by the National Association of Realtors, the Census Bureau or the Obama people about housing inventories. Recent data from several sources (more on this later) show that bank owned real estate inventories are ballooning up to record levels. By one estimate (more later) shows at least 7 years of housing inventory building up in the system. Draw your own conclusions...

Two other notes: It would appear that retail bullion inventory is starting to wear thin. Tulving is sold out of bags of 90% silver coins and RCM 100 oz. silver bars. He's also out of 1 oz. gold Austrian Philharmonics and has jacked up his bid/offer on most 1 oz. sovereign-minted bullion coins. Reports from Germany about coin dealers over there temporarily shutting due to empty shelves have been confirmed by two different people from Germany in the comment section of this blog.

And is anyone completely horrified, besides me, from the reports that BOTH Attorney General Eric Holder AND Dept of Homeland Security El Jefe (and a heavy one at that) Janet Napolitano have NOT even bothered to read the Arizona immigration law recently passed? What the hell are they doing if they're not protecting our Constitutional rights and protecting our borders?

7 comments:

HalWednesday, 19 May, 2010
Holder should be immediately FIRED for opining in the AZ act without reading it.

He is not a "rookie" lawyer at some firm who bs'ed his way thru a day--He is the friggin ATTY General.

It speaks volumes about Obamas many picks in skills, integrity and agenda.
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U-6Wednesday, 19 May, 2010
What the hell are they doing if they're not protecting our Constitutional rights and protecting our borders?

Violating both of them, clearly.
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JoeWednesday, 19 May, 2010
Dave,

I just saw a $16.67 print for Silver. WTF is going on here?

Joe M.
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EdwardoWednesday, 19 May, 2010
Hey, Dave, it's spelled El Jefe. In the meantime, I sense hedge fund liquidation of PMs today, or perhaps some other nefarious activity to slam gold and silver.
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Harvey GeeWednesday, 19 May, 2010
Also another blow to the housing marketing, mortgage deliquencies in Q1 vs Q4 of last year. A record high they proclaim!

http://news.yahoo.com/s/ap/20100519/ap_on_bi_ge/us_home_foreclosures
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Dave in DenverWednesday, 19 May, 2010
Joe I think that 16.67 print was either a bad print or a big pick-off in the mini silver contracts.

Gold o/i went down 21k contacts yesterday. This is a pure unadulterated paper raid by Wall Street. We actually started deploying some cash we had raised over the past week.
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Dave in DenverWednesday, 19 May, 2010
LOL thanks Edwardo - you are correct. Thanks for the link HH.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.