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?


  1. 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.

  2. What the hell are they doing if they're not protecting our Constitutional rights and protecting our borders?

    Violating both of them, clearly.

  3. Dave,

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

    Joe M.

  4. 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.

  5. Also another blow to the housing marketing, mortgage deliquencies in Q1 vs Q4 of last year. A record high they proclaim!

  6. 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.

  7. LOL thanks Edwardo - you are correct. Thanks for the link HH.