Reply #6: Manipulation Of US Financial Markets Has Gone Bonkers

[Buttercup McToots]

The gold moon shot in process:

December gold
http://futures.tradingcharts.com/chart/GD/C7

Silver is finally doing what silver should … showing some serious oomph. The silver open interest went up 4,227 to 145,858, which is at least a 28-year high. One of these coming days we will get our $1 to $3 up day. Silver on the move:

December silver
http://futures.tradingcharts.com/chart/SV/C7

With today’s move, silver is technically SUPER BULLISH, as it has broken out, trading to the upside after an extensive consolidation period. Look at the monthly chart:

http://futures.tradingcharts.com/chart/SV/M

-END-

Crude oil finished the day up $2.72 to $96.70 per barrel.

On CNBC they said $101 oil would put it at an inflation adjusted all-time high. Gold needs to take out $2200 (minimum) to do the same. That is how much The Gold Cartel has suppressed the price all these years. Gold will take out $2200 and probably double that price.

The dollar fell another .37 to 76.02. The euro gained .77 to 145.53.

CARTEL CAPITULATION WATCH

Metals - Gold sets fresh high on inflation fears, weak dollar, safe-haven buying

November 06, 2007: 12:18 PM EST

LONDON, Nov. 6, 2007 (Thomson Financial delivered by Newstex) -- Gold surged to a 28-year high of 824.50 usd, just 3 pct lower than its record peak, as high oil prices sparked inflation jitters.

A weak dollar, which hit a series of lows against the euro today, also lent support because it made commodities denominated in the greenback cheaper for those trading in other currencies…

-END-

Then how on earth does the DOW rise 118 to 13,861 and the DOG gain 30 to 2825, while the yield on the 10-yr T note is not far from its lows at 4.37%? This is how …

It is truly mindboggling what the Working Group on Financial Markets, Exchange Stabilization Fund, Counterparty Risk Management Group, and Gold Cartel are doing to the US stock market, gold market and interest rate scene.

Clearly they are in a state of panic behind the scenes and, while losing control of the gold price, have their entire PPT ARMY propping up the market to counteract what gold is doing. Gold is the barometer of how well Wall Street is doing in many ways. So, to keep the investing public and US consumer further in the dark about how bad things really are, they move the DOW up.

The money they must be throwing into the US financial market system has to be staggering … to make sure …

"Everything is fine"…

Yet, in addition to the disappearing dollar, and soaring gold/oil prices, the news is horrendous and worsening:

BEAZER 4Q NET NEW HOME ORDERS FALL 53% TO 973

BEAZER SUSPENDS QUARTERLY DIVIDEND OF 10C

IndyMac Reports $202.7 Million Loss on Late Payments

Nov. 6 (Bloomberg) -- IndyMac Bancorp Inc., the second- largest independent U.S. mortgage lender, reported a loss five times bigger than the company forecast in September as foreclosures and late payments rose to a record.

IndyMac cut its dividend in half, eliminated more than 1,500 jobs and increased reserves for bad loans by 47 percent to help weather the worst housing slump in 16 years. The loss of $202.7 million, or $2.77 a share, compares with the 50-cents-a-share forecast the Pasadena, California-based company made on Sept. 7.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aV0m3MR6afXs&refer=home

-END-

Fitch may cut Countrywide, changes bank outlooks

NEW YORK, Nov 6 (Reuters) - Fitch Ratings on Tuesday said it may cut its rating on Countrywide Financial Corp and also revised its outlook on several banks, including changing Washington Mutual Inc's outlook to "negative" from "stable," citing a challenging market environment.

Fitch previously had Countrywide on rating watch "evolving" meaning the rating could be raised, lowered or left unchanged. Countrywide is rated "BBB-plus," the third-lowest investment grade. WaMu is rated "A," the sixth-highest ranking. A negative outlook indicates a rating cut is likely over the next one to two years.
(Reporting by Karen Brettell; Editing by James Dalgleish)

-END-

More great financial market news:

Markets fear banks have $1 trillion in toxic debt

By Sean O’Grady, Economics Editor
Published: 06 November 2007
A new phase in the credit crunch, one of "$1 trillion losses" seems to be dawning. The crisis at Citigroup and renewed doubts about some of the world’s leading banks disquieted stock markets on both sides of the Atlantic yesterday, with the fractious mood set to continue.

http://news.independent.co.uk/business/news/article3132507.ece

-END-

REUTERS 3-MONTH DOLLAR LIBOR RISE THE BIGGEST ONE-DAY INCREASE SINCE SEPT 27

REUTERS BBA LIBOR 3-MONTH DOLLAR RATES FIXED UP AT 4.89750 PCT VS 4.87500 PCT MONDAY

REUTERS BBA LIBOR 3-MONTH STERLING RATES FIXED AT 6.2800 PCT VS 6.28125 PCT MONDAY

REUTERS BBA LIBOR 3-MONTH EURO RATES FIXED AT 4.58563 PCT, LOWEST SINCE AUG 16

REUTERS DOLLAR INDEX DROPS BELOW 76.0 TO RECORD LOW AMID BROAD GREENBACK DECLINE

REUTERS DOLLAR EXTENDS LOSSES, PUSHING EURO TO ALL-TIME HIGH ABOVE $1.4565

0:28 Options frenzy exacerbating oil surge - FT
The FT reports that heavy investor interest in oil call options is contributing to the surge in crude as the banks that sell the options have to to hedge their exposure by buying oil in the spot market. According to the paper, the options frenzy is evidenced by the fact that open interest in Nymex December 2010 call options at $100 a barrel rose to 24,903 contracts on Monday, double the level at the start ofthe year, while open interest at $120, $160 and even $250 a barrel has also surged, albeit from significantly lower levels.
Reference Link (subscription required)
* * * * *

The US economic news stinks all the way around:

21:28 Banks tightening lending standards - WSJ
Citing the Federal Reserve's latest senior loan officer survey, the Journalr eports that more banks are tightening lending standards for home buyers, even those with good credit. Roughly 40% of the banks said they tightened terms for prime borrowers in the prior three months, up 15% from the previous survey in July. In addition, about 60% of banks saidthat they tightened standards on home mortgages classified as "nontraditional," up from 40% in the July survey. The paper adds that the survey also found that banks are raising borrowing costs for larger businesses, as 20% of domestic banks said they tightened standards on loans to large and medium-size firms, up from about 10% in the prior survey.

* * * * *

Hmmm…

U.S. Fed banks to hike fees, cut electronic charges

WASHINGTON, Nov 6 (Reuters) - The U.S. Federal Reserve said on Tuesday it was raising overall fees for priced services to banks by about 3 percent in 2008, increasing charges for paper check processing but cutting them for electronic payment services.

The Fed said in a statement that Federal Reserve Banks project they will recover 101.1 percent of their priced services costs in 2008 and achieve full cost recovery for the fourth consecutive year. This compares to an estimated 2007 cost recovery of 101.5 percent and a 2006 recovery of 108.8 percent.

The Reserve Banks plan to raise check service fees by 5 percent while cutting fees by 8 percent for electronic payment services…

-END-




http://news.goldseek.com/LemetropoleCafe/1194451380.php