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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (36769)	9/8/2005 10:07:15 PM
From: mishedlo	Respond to of 116555

Heinz on Gold in YEN and CDE Date: Thu Sep 08 2005 21:16 trotsky (mini-miner) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved will it benefit the company? definitely, if the silver price stays reasonably firm. the bulk of CDE's current production is provided by the very high cost Rochester mine, and they have to move away from that to lower cost mines, so this is a step in the right direction. of course if i were them, i'd have bought gold production instead... Date: Thu Sep 08 2005 21:06 trotsky (frustrated@Yen PoG) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved i find the chart of gold in yen very bullish....it actually looks like it has just entered into an acceleration phase ( reminds me of how the Dow looked just before it took off in '95 ) . Date: Thu Sep 08 2005 20:47 trotsky (MiniMiner@CDE) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "so, $36 million for 15 million ounces reserves plus mining costs of $2.75 per ounce comes to roughly $4.75 per ounce inclusive." only if you believe that the 'proven and probable' is all that is to be found there. note that the transaction caps total production on behalf of CDE at 24 million ounces. you're making a common mistake - resource extractors basically never test for the entire available provable reserve. it would not be economic to do so, so instead reserves are only proved for a pre-defined time horizon of expected production.

To: Chispas who wrote (36769)	9/9/2005 1:22:59 AM
From: mishedlo	Respond to of 116555

financialsense.com Apparently, New Orleans residents believed that Hurricane Katrina was the exception that proved Murphy's Law. Though the inability of New Orleans' levee system to withstand a category four hurricane was apparently widely known, rather than doing something preemptive to fortify it, the people and their government decided to do nothing and hope for the best. So each year, they played a version of Hurricane Russian Roulette, and until 2005, the cartridge was always empty. Over the years those expressing concern about the potential for just such a disaster were likely labeled as being “fear mongers,” “Chicken Littles,” or “Gloom and Doomers,” and their warnings likely dismissed, both due to the dire nature of their forecasts, and the number of years that had passed without consequence. Unfortunately the situation in New Orleans is a microcosm of our nation as a whole. Although our reliance on foreign savings and production are widely known, and most economists accept the fact that a real economic disaster would ensue should foreigners discontinue such subsidies, dump their hoards of U.S. treasuries, and refuse to exchange real goods for paper dollars. However, rather than perusing policies to rebalance our economy, we simply do nothing, and hope that day of reckoning never arrives. Politicians, of course, never think past the next election. Diverting resources to fortify levees in advance of a potential hurricane would not have garnered Louisiana bureaucrats many votes. Similarly, allowing a recession to run its course today to prevent a more severe one from developing in the future finds few supporters on Capital Hill. However, just as that strategy backfired in New Orleans, so too will it for America as a whole. The financial equivalent of Hurricane Katrina is currently forming in the East, and our economic levees are just as vulnerable as were their real counterparts in New Orleans. As Katrina takes its toll on the U.S. economy, potentially prompting the Fed to ease off on much needed, and long over-due, interest rate hikes, another “conundrum” is likely to develop. Just as a series of quarter point rate hikes did not produce a much anticipated corresponding rise in long-term yields (the conundrum), the cessation of such increases ironically might. Just when the Fed wants to help the economy by not raising short-term rates, the market may finally do the opposite, by moving long-term rates much higher. It has been the anticipation of future rate hikes that has been propping up the dollar. Remove that prop, and the Fed's rate-cutting levee will fail, as it will be overwhelmed by a storm surge of foreign selling.

To: Chispas who wrote (36769)	9/9/2005 1:33:25 AM
From: mishedlo	Respond to of 116555

Fannie, Freddie to Bolster Disclosures smartmoney.com

To: Chispas who wrote (36769)	9/9/2005 1:37:09 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Fannie Mae offers relief for Hurricane Katrina victims Friday, September 9, 2005 Fannie Mae is offering mortgage relief for borrowers in Mississippi, Louisiana, Alabama, Florida and other states facing hardships from damage caused by Hurricane Katrina, the mortgage giant announced Monday. With Fannie Mae's disaster relief provisions, lenders can help borrowers in several ways. These include suspending mortgage payments for up to three months, reducing the payments for up to 18 months, or in more severe cases, creating longer loan payback plans. dailynewstranscript.com Relief for Katrina victims or relief for itself? I think it is acting to prevent massive rising delinquencies

To: Chispas who wrote (36769)	9/9/2005 1:51:33 AM
From: mishedlo	Respond to of 116555

U.S. Names 5 Firms to Build Housing Bechtel, Fluor Will Help Erect Emergency Facilities Along Storm-Battered Gulf By YOCHI J. DREAZEN Staff Reporter of THE WALL STREET JOURNAL September 9, 2005 WASHINGTON -- The Bush administration has hired five private companies -- including several taking part in the Iraqi rebuilding effort -- to build thousands of emergency housing units in storm-ravaged areas of Louisiana, Alabama and Mississippi. The Federal Emergency Management Agency awarded contracts to Bechtel National Inc. of San Francisco, Fluor Corp., based in Aliso Viejo, Calif., and Shaw Group of Baton Rouge, La. The other companies awarded FEMA work are CH2M Hill of Denver, which is providing emergency housing in Alabama, and Dewberry Technologies of Fairfax, Va., which is providing planning and reporting tools to help guide the rebuilding efforts. They are the first major contracts awarded in the wake of Hurricane Katrina, in what is expected to be the largest and most lucrative government-funded rebuilding effort ever in the U.S. Halliburton Corp.'s Kellogg, Brown & Root unit is already doing repair work at three Navy facilities in Mississippi as part of a pre-existing contract.

To: Chispas who wrote (36769)	9/9/2005 1:52:18 AM
From: mishedlo	Respond to of 116555

U.S. Sues Realtors, Claims Web Rules Limit Discounting By JOHN R. WILKE and JAMES R. HAGERTY Staff Reporters of THE WALL STREET JOURNAL September 9, 2005 WASHINGTON -- The Justice Department challenged the nation's dominant real-estate trade group in a lawsuit that could lower costs of buying and selling homes. The federal antitrust suit, filed in U.S. District Court in Chicago against the National Association of Realtors, targets the group's bylaws, which allow members to withhold online listings from other brokers in a local market. The government charges that the rules illegally could restrict discounting and disadvantage Internet competitors. The lawsuit is part of a broader effort by the Justice Department and the Federal Trade Commission to protect competition in the residential-real-estate market. Strong sales and rising prices have been a huge boon to brokers, who despite higher prices continue to charge commissions of 5% to 6% of a home's sale price -- reaping an estimated $60 billion in such fees last year. The association's policy "stifles competition to the advantage of some of its members, at the expense of home buyers and sellers across the country," said J. Bruce McDonald, the acting antitrust chief, who was nominated to the post by President Bush last month. The suit went forward despite the political power of the association's more than 1.2 million members in state capitals and Congress, and is likely to win strong support among consumers

To: Chispas who wrote (36769)	9/9/2005 1:54:55 AM
From: mishedlo	Respond to of 116555

Banks Asked to Return Mortgage Payments of Katrina Victims Friday, Sept. 9, 2005 NEW YORK -- In what may be a first for the U.S. housing market, banks are being encouraged to return the most recent mortgage loan payments from people displaced by Hurricane Katrina. Freddie Mac, one of two government housing agencies, said Thursday it has asked banks to return September mortgage payments already made by anyone in the stricken areas. Also, the housing agency has asked lenders to return any September mortgage payments if borrowers ask for their money back.