U.S. Mint Sets Price for New, One Ounce American Eagle Gold Coins at $1,119.95 Each
April 2nd, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Right now, the spot market price for gold is $890.50 per ounce. The new American Eagle price of $1,119.95 includes a premium of $229.45, per one ounce coin—over the spot price of the metal. Obviously, coins have minting costs associated with them, but $229.45 per coin!?
Now, look at BullionVault. The difference between the spot market price and the price on BullionVault’s Zurich market facility is less than $3 per ounce at the moment. BullionVault’s low fees make it a very cost efficient way to own physical gold. NOTE: I am a BullionVault client and affiliate. Cryptogon readers buy and sell tens of thousands of dollars worth of physical gold on BullionVault every month.
Via: Cryptome:
The United States Mint is announcing the prices of the 2008 American Eagle Gold Uncirculated Coin Program.
Pursuant to the authority that 31 U.S.C. 5111(a) and 5112(a)(7-10) grant the Secretary of the Treasury to mint and issue gold coins, and to prepare and distribute numismatic items, the United States Mint mints and issues 2008 American Eagle Gold Proof and Uncirculated Coins with the following weights: One-ounce, one-half ounce, one-quarter ounce, one-tenth ounce. The United States Mint also produces an American Eagle four-coin set that contains one coin of each denomination.
Because of increases in the cost of gold, the United States Mint will begin accepting orders for 2008 American Eagle Gold Uncirculated Coins at the prices indicated below, effective April 1, 2008:
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Description Price
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American Eagle Gold Uncirculated Coins:
One-ounce gold uncirculated coin………………………. $1,119.95
One-half ounce gold uncirculated coin………………….. 565.95
One-quarter ounce gold uncirculated coin……………….. 295.95
One-tenth ounce gold uncirculated coin…………………. 124.95
Four-coin gold uncirculated set……………………….. 2,039.95
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Some Homes Worth Less than Their Copper Pipes
April 2nd, 2008Via: Reuters:
Shards of broken glass outside the basement window of 31 Vine Street hint at the destruction inside the three-story home.
Thieves smashed the window to break in and then gutted the property for its copper pipes — a crime that has spread across the United States as the economy slows and foreclosed homes stand empty and vulnerable.
“They cut it here and then pulled it right out of the wall,” real estate broker Marc Charney said, pointing to broken plaster near a wrecked baseboard heating system in the 2,774-sq-ft home in Brockton, Massachusetts, a working-class city of 94,304 people.
Similar stories are unfolding nationwide as a glut of home foreclosures coincides with record highs in the price of copper and other metals.
Real estate brokers and local authorities say once-proud homes coast-to-coast are being stripped for copper, aluminum, and brass by thieves. Much of it ends up with scrap metal traders who say nearly all copper gets shipped overseas, much of it to China and India.
In areas hit hardest by foreclosures, such as the Slavic Village neighborhood of Cleveland, Ohio, copper and other metals used in plumbing, heating systems and telephone lines are now more valuable than some homes.
“We’re in an incredibly unfortunate time where the nonferrous metals commodities market for scrap is at an all-time high. Houses are getting stripped pretty quickly once they go through the foreclosure process,” Cleveland city councilor Tony Brancatelli said.
“We’re seeing houses sold for $100 that are distressed houses that should not be recycled,” he said. Some boarded-up homes in his Slavic Village community have “No copper, only PVC” painted on the boards to stop would-be thieves.
200,000 U.S. Banking Jobs at Risk
April 2nd, 2008Via: AP:
The U.S. financial industry has been shedding jobs at a record clip, and some analysts predict the pace will only accelerate over the next year-and-a-half as banks cut costs in the face of the housing market slump and the weak economy.
Analysts at the financial research firm Celent LLC said in a report Tuesday that it expects the U.S. commercial banking industry — essentially, all companies that lend or collect deposits — to lose 200,000 of its 2 million jobs over the next 12 to 18 months.
An annual loss of 200,000 jobs at the nation’s commercial banks would be an unprecedented number.
In 2007, the entire financial services sector — which consists of mostly commercial banks — announced job cuts that totaled a record 153,000, according to the job placement consultancy Challenger, Gray & Christmas, Inc. More than half of those cuts were in the mortgage-lending business, and occurred all over the country, particularly in New York and California.
Octavio Marenzi, the head of Celent’s financial consultancy unit, said more layoffs are inevitable as the subprime crisis hits other parts of the banking industry and spreads beyond mortgages to mortgage-related products, such as home-equity loans, and other types of lending, such as credit cards.
“The banking industry over the past 40 years has never seen a downturn in its revenue growth,” Marenzi said. “In 2008, it looks like it will decrease for the first time in living memory. They’re going to have to respond with severe cost cutting. It’s not an environment they’re entirely used to.”
The credit crisis began in earnest last summer when the markets tightened up at the sight of spiking subprime mortgage defaults.
“There’s no horizon yet that anybody can see,” said John Challenger, who runs Challenger, Gray & Christmas. “New events keep rolling out … suggesting that there’s more to come.”
New York Times: “Wall Street Shows Optimism That Crisis Is Fading”
April 2nd, 2008Can UBS and Merrill Lynch customers get their money yet?
No.
Via: New York Times:
Stocks started the second quarter with a soaring rally on Tuesday that sent the Dow Jones industrial average up nearly 400 points, its best performance in two weeks, as investors found reasons to take heart in a fresh round of mortgage-related write-offs at UBS and Deutsche Bank and a capital infusion at Lehman Brothers, the brokerage firm.
The Standard & Poor’s 500-stock index gained 3.6 percent on the strength of a surge in shares of financial services firms. Lehman Brothers, the bond insurer MBIA and the mortgage giant Fannie Mae were among the index’s biggest gainers.
Asian stocks, also led by banks, advanced in early trading Wednesday.
Despite the discouraging numbers — $19 billion in write-downs at UBS and nearly $4 billion at Deutsche Bank in the first quarter alone — investors appeared hopeful that the bad news could signal the last of Wall Street’s credit woes.
“UBS was providing transparency to the market,” said Ryan Larson, a Voyageur Asset Management trader. “That’s something we’ve desperately needed in the face of this current crisis.”
Adding to the good feelings, Lehman said private investors had snapped up a $4 billion offering of preferred stock — far more than expected — in a move to dispel a swirl of rumors about its stability. Shares of Lehman jumped 17 percent. UBS said it would try a similar move with $15 billion in additional funds; its shares rose 15 percent.
Analysts pointed to the successful Lehman offering as a sign that the actions of the Federal Reserve had restored some confidence among banks.
“Lehman demonstrated that not only could they raise the capital at a reasonable cost, but that the Fed really had succeeded at stabilizing the financial system,” said Ed Yardeni, the investment strategist. “Lehman was an important test of that.”
Treasury yields rose and the dollar advanced against the euro, signs of increased confidence among investors that Wall Street will weather the credit crisis.
Military Report: Secretly ‘Recruit or Hire Bloggers’
April 1st, 2008“Hi, Kevin, um, yeah, this is Bob from U.S. Special Operations Command. We’re running an introductory offer over here that might interest you. We know that you’ve fled the U.S. for good and have several thousand pages of, well, unpleasant information on your site, mmkay. But, for a limited time only, the U.S. Government is willing to pay you $149.95 per month to just tone it the f*ck down a little bit * chuckle * and include some stories about how U.S. troops are building democracy in Iraq and other bullshit like that. Can you work with me here, Kevin? Talk to me. Is this a sweet deal, or what? America the Beautiful! $149.95 per month! How you gonna beat that? Limited time offer!”
Via: Wired:
Information strategists can consider clandestinely recruiting or hiring prominent bloggers or other persons of prominence… to pass the U.S. message. In this way, the U.S. can overleap the entrenched inequalities and make use of preexisting intellectual and social capital. Sometimes numbers can be effective; hiring a block of bloggers to verbally attack a specific person or promote a specific message may be worth considering. On the other hand, such operations can have a blowback effect, as witnessed by the public reaction following revelations that the U.S. military had paid journalists to publish stories in the Iraqi press under their own names. People do not like to be deceived, and the price of being exposed is lost credibility and trust.
An alternative strategy is to “make” a blog and blogger. The process of boosting the blog to a position of influence could take some time, however, and depending on the person running the blog, may impose a significant educational burden, in terms of cultural and linguistic training before the blog could be put online to any useful effect. Still, there are people in the military today who like to blog. In some cases, their talents might be redirected toward operating blogs as part of an information campaign. If a military blog offers valuable information that is not available from other sources, it could rise in rank fairly rapidly.
FBI Tracked King’s Every Move
April 1st, 2008Via: CNN:
Hoping to prove the Rev. Martin Luther King Jr. was under the influence of Communists, the FBI kept the civil rights leader under constant surveillance.
The agency’s hidden tape recorders turned up almost nothing about communism.
But they did reveal embarrassing details about King’s sex life — details the FBI was able to use against him. Video Watch how the FBI tracked King’s every move »
The almost fanatical zeal with which the FBI pursued King is disclosed in tens of thousands of FBI memos from the 1960s.
The FBI paper trail spells out in detail the government agency’s concerted efforts to derail King’s efforts on behalf of the civil rights movement.
The FBI’s interest in King intensified after the March on Washington in August 1963, when King delivered his “I have a dream speech,” which many historians consider the most important speech of the 20th century. After the speech, an FBI memo called King the “most dangerous and effective Negro leader in the country.”
The bureau convened a meeting of department heads to “explore how best to carry on our investigation [of King] to produce the desired results without embarrassment to the Bureau,” which included “a complete analysis of the avenues of approach aimed at neutralizing King as an effective Negro leader.”
The FBI began secretly tracking King’s flights and watching his associates. In July 1963, a month before the March on Washington, FBI Director J. Edgar Hoover filed a request with Attorney General Robert Kennedy to tap King’s and his associates’ phones and to bug their homes and offices.
In September, Kennedy consented to the technical surveillance. Kennedy gave the FBI permission to break into King’s office and home to install the bugs, as long as agents recognized the “delicacy of this particular matter” and didn’t get caught installing them. Kennedy added a proviso — he wanted to be personally informed of any pertinent information.
While King did have associates who had been members of the Communist Party, by all accounts they severed those ties when they started working in the civil rights movement. What’s more, the FBI bugs never picked up evidence that King himself was a Communist, or was interested in toeing the party line.
…
When King learned he would be the recipient of the Nobel Peace Prize in 1964, the FBI decided to take its harassment of King one step further, sending him an insulting and threatening note anonymously. A draft was found in the FBI files years later. In it the FBI wrote, “You are a colossal fraud and an evil, vicious one at that.” The letter went on to say, “The American public … will know you for what you are — an evil, abnormal beast,” and “Satan could not do more.”
The letter’s threat was ominous, if not specific: “King you are done.” Some have theorized the intent of the letter was to drive King to commit suicide in order to avoid personal embarrassment. “King, there is only one thing left for you to do,” the letter concluded. “You know what it is … You better take it before your filthy, abnormal fraudulent self is bared to the nation.”
More European Banking Horror: Deutsche Bank Hit by Writedowns as Crisis Worsens
April 1st, 2008There’s an infamous Cryptogon post that doesn’t mention Deutsche Bank at all. Get me?
* wink * * wink *
Today’s Reuters article says, “Deutsche is facing hurdles in, for example, leveraged finance and structured credit.”
* wink * * wink *
Hint: I didn’t work for Deutsche Bank.
Ok, that’s it. Comments are off. Take it or leave it. Your mileage may vary.
Via: Reuters:
Deutsche Bank more than doubled writedowns in the wake of the global credit crisis, casting a pall over the prospects for the bank that had been seen as little affected by the melt-down.
Warning investors on Tuesday that conditions had deteriorated dramatically in recent weeks, Chief Executive Josef Ackermann said the bank would write down 2.5 billion euros ($3.9 billion) in the first quarter on the value of loans it has committed to as well as other investments.
The news was overshadowed by rival UBS, which unveiled $19 billion of additional writedowns on U.S. property and related assets, pushing it $12 billion into the red in the first quarter and forcing it into a fresh hunt for funds.
Deutsche Bank, the country’s biggest financier, had been seen as one of the winners in the crisis that fatally wounded rival Bear Stearns and toppled other Wall Street titans.
But as conditions in global markets worsen, the bank is looking increasingly vulnerable.
The new write-down is equivalent to more than a third of its 2007 net profit and more than all the markdowns the bank made last year.
Last week, it warned that aftershocks could hit its 2008 profits. “Conditions have become significantly more challenging during the last few weeks,” it said on Tuesday. Deutsche is facing hurdles in, for example, leveraged finance and structured credit. Formerly a big money spinner, this market has ground to a halt as credit market turmoil spread.
Gold Sharply Lower, Significant Support Taken Out
April 1st, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
It’s all right here. Bearish engulfing on the weekly… $850 is the next notable support. That’s also right around your 61.8 fib fan.
Via: Reuters:
Gold tumbled to a two-month low below the key $900-an-ounce level on Tuesday as a jump in the dollar against the euro dampened the metal’s appeal as an alternative investment and triggered bullion selling.
Falling prices of oil also put pressure on gold, which is traditionally seen as a hedge against inflation. Other metals also suffered heavy losses, with silver slipping 3.8 percent to a two-month low and platinum falling about 4 percent.
U.S. Credit Crunch Hits Education as Banks Abandon Student Loans
April 1st, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
I wonder what will happen to Apple’s stock price with so many students unable to buy those shiny Powerbooks and iPods with borrowed money…
Ok, that may seem flippant, but I can’t really muster up too many good things to say about going deeply into debt to pay for college. Not at this late stage of the game.
Here’s something from Smoking Mirrors that might interest the kids:
You’re being squeezed by these same money men so that life will become so intolerable that you’ll be glad to run through the bloody trenches and razor wire to free yourself from the conditions created by the people who sent you running in the first place.
There’s too many of you. You’re taking up too much space. Over here and over there people are breeding like rabbits because that is what people do when they are starving and short of resources, shelter, food, opportunity and the value of their labor has disappeared because they already dug up and sold everything they had to the people who bought off their leaders and created the unbearable debt they find themselves in.
(Thanks, by the way, to the person who bought their new Mac mini via Cryptogon.)
Via: Times Online:
One of America’s leading banking associations has given warning that the United States faces a growing educational apartheid as some lenders withdraw from student loans amid new evidence that the credit crisis has spread across all types of borrowing.
In the past fortnight, some banks, including HSBC, have pulled out of the $85 billion (£42 billion) a year US student loans market, fuelling anxiety that the turmoil that hit debt markets on Wall Street last summer is spilling over into the wider economy and making credit more difficult to secure for ordinary American households.
In the US, many undergraduates take out a federal guaranteed loan and top up their financial needs with a private loan from lenders such as Bank of America, JPMorgan Chase and Citi-group. In the academic year 2005-06, $17 billion in private student loans was used to finance higher education.
Banks have become reluctant to offer private student loans because worsening credit conditions have meant that they cannot package up the loans and sell them on.
Although the brightest students who win places at America’s rich Ivy League universities will be affected less because of generous bursaries – which do not have to be repaid – less able students applying to other institutions are expected to face difficulty in securing private loans to fund their study. At one end of the field is Harvard University, with $34 billion of endowments, and at the other are many community colleges and low-tier universities with limited resources.
Joe Belew, president of the Consumer Bankers’ Association, said: “Some of the banks are getting out. Part of the reason is that Congress has cut the fees they could charge, making some loans pretty much unprofitable. But part of the reason is that they can’t securitise the debt. The problems they have had with mortgage-backed debt – it’s the same thing at play in student lending.
Analyst Predicts Corn Rationing in 2008
April 1st, 2008In 2008, food could become an out front national security issue in the developed world. My top concerns are wheat and corn.
Mmm hmm.
Via: Houston Chronicle:
A BB&T Capital Markets analyst said Monday corn rationing may be necessary this year, following a U.S. Department of Agriculture report predicting farmers would plant far fewer acres of corn in 2008.
According to the March Prospective Plantings Report, farmers intend to plant about 86 million acres of corn this year, down 8 percent from 2007, when the amount of corn planted was the highest since World War II.
Analyst Heather L. Jones said in a note to investors if the USDA estimate proves accurate, the year may produce just 200 million bushels of corn. That, she said, wouldn’t be enough to meet demand, given current export and feed demand trends and higher ethanol demand. Both ethanol and animal feed are made with corn.
“That is an untenable inventory demand, in our opinion,” she said. “Consequently, we believe demand must be rationed or there needs to be a big supply response from other growing regions of the world.”
The plantings report caused nervousness among meat producers and food makers who spent last year struggling to offset higher corn costs. Even though acreage was high, demand for ethanol and need overseas pushed prices to record levels.
Jones said she expects corn prices to rise even more, especially if unfavorable weather damages any of the crop.


