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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (59368)	12/26/2009 9:50:10 PM
From: TobagoJack	Read Replies (1) \| Respond to of 217561

<<dysprosium, terbium, thulium, lutetium and yttrium. China accounts for 95% of global production and about 60% of consumption of those rare earths. businessweek.com >> ... if according to the americans, should we believe them, then it is because someone mighty had chosen the right sort for the new new age ... just as same mighty had given all who happen to occupy nz including one named mq a whole lot of trees ;0) amazing what folks can be led to believe. on another matter, maybe not quite decided by god, just in in-tray, Cumberland Advisors 614 Landis Avenue Vineland NJ 08360-8007 1-800-257-7013 cumber.com Government by Stealth: the GSE affair continues December 25, 2009 Merry Christmas to all and best of holiday wishes. We didn’t plan on writing today but are doing so to be sure our clients and readers and the especially the 300 worldwide journalists on our list see the action just taken by the Treasury Department under Secretary Geithner. It was clearly designed to minimize the press coverage of the changes in the GSEs. This item was released after the closure of the healthcare debate and after the extension of the debt limit passed and after the president left for his Hawaii trip. Sent out on Thursday afternoon, Christmas Eve, the press release outlines the many changes that Treasury is making because of the worsening conditions of Fannie and Freddie. And it paves the way for the recognition of losses in the hundreds of billions in the GSE mortgage pools where the face amounts of the mortgages exceed the property market values or foreclosure amounts. This action also moves things one step closer to full nationalization of the GSEs and full specific guarantee of the GSE debt by the US Treasury. That would put official GSE debt on the US government’s sovereign debt balance sheet. That is also where it belongs since this has been a game of deception over the implied guarantee and it is time for it to stop. Technically the GSEs are still operating under an ”implied” guarantee. Because of that the foreign sources and domestic US institutions have been reluctant to buy GSE debt and the Fed has had to step in with over $1 trillion to bolster the US housing market. We believe this action confirms the seriousness of the GSE problem and is another reason why the Fed must stay on hold with low interest rates for an ”extended period” and why there may even be an extension and enlargement of the Fed’s holdings of GSE paper. If markets do NOT reprice GSE debt at very tight spreads to Treasury debt, the home mortgage interest rate in the US will rise and the nascent housing recovery will be choked off. The Fed knows this and is watching these spreads closely. The full text of the Wall Street Journal online report and the Treasury release is below. When will Mr Geithner and his colleagues learn that there are no secrets and that transparency and explanation is much better than release of details in the middle of the night. Probably never but there are some of us who will leave our holiday time for a few minutes and keep reminding them. We are scheduled to remind them again on CNBC Closing Bell at 4:30 PM on Monday. CNBC Squawk Box Asia and on CNBC Power Lunch on December 30. We again wish our readers best wishes for the New Year. Our earlier comments on GSEs are archived on our website. We again commend Barclays for its excellent report on the GSE situation. The text is below. Wall Street Journal