Update Money Matters July 12, 2012

Marc’s notes:

Hi kids. Just returned from vacation and finished up little league and the markets still look rather bi polar, unable to decide which way to go. With Euro problems still haunting us and markets looking rather anemic, the FEDS are gearing up for more stimuli I think.

I still am wary of buying anything right now except maybe an overseas property, offshore gold, a Swiss annuity or 2, or a plot of land or 2, just to have more “legs” on my centipede. We sit and wait until the FEDS announce something. They DID announce an extension of operation twist so I included another article on that below.

Meanwhile I am buying the GGN gold fund that pays a nice dividend AND invests in gold and also I buy physical gold and silver always. I love the Global Gold program (holds gold in Switzerland) and the Swiss Annuities are now available again so consider these if you like the program! Email me if you need a booklet on either. Offshore money is a must for my book!

On housing:

LOS ANGELES (AP) — Banks are increasingly placing homes with unpaid mortgages on a countdown that could deliver a swell of new foreclosed properties onto the market by early next year, potentially weighing further on home values.

June provided the latest evidence of this trend, as the number of U.S. homes entering the foreclosure process for the first time increased on an annual basis for the second month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday.

California in particular saw a big spike in foreclosure starts, or homes placed on the foreclosure path for the first time. They increased 18 percent versus June last year, the firm said.

The increase in foreclosure starts comes as banks make up for time lost last year as the mortgage-lending industry grappled with allegations that it had processed foreclosures without verifying documents.

(My take on it remains the same-Housing is down, down, down still and for a long time to come. Lots of land are looking attractive to me so I am biding my time and thinking of making some LOW, LOW offers).

Market action:

I am also hot on oil at this range and looking at UCO, a leveraged oil fund to sell calls against. (Advanced trade only).

Meanwhile keep safe in bank accounts and stay tuned. Markets will move quickly soon, direction unknown but I sense rock and roll time soon. Have questions? Email me market questions anytime!

Ok, so here is an EVERBANK Account which I like and pays nicely. Check it out if looking for a bank account with a good rate, called BONUS RATE. Here is their sales speal. (Forgive the sale sounding text).

Here are the details on the Bonus Rate:

  • Bonus Rate increased to 1.25% for 6 months
  • Money Market Account First Year APY: 1.01% up to $50k
  • Checking Account First Year APY: 0.93% on accounts with $25k - $50k
  • Eligible Accounts: All NEW Yield Pledge Checking & Money Market Accounts


Even after the bonus rate period has ended, the Yield Pledge promise ensures these accounts will remain in the top 5% of competitive accounts nationwide – always. This consistently offers some of the highest yields in the nation (currently over 7X the national average for money market).

You can also deposit checks from your mobile phone! The EverBank mobile banking app allows you to simply snap a photo of your check and send the image to us for deposit. For more information, or to download the app visit: EverBank.com/mobile

Use the following links for the Yield Pledge Money Market and Yield Pledge Checking accounts if interested:

Money Market:

https://www.everbank.com/personal/high-yield-money-market.aspx?referid=13286

Checking:

https://www.everbank.com/personal/interest-checking.aspx?referid=13286

Money Class: New date in September. If we have your old check or you have signed up at KVMR, note the month and you still are paid up so you can attend.  September for Class 1. Date and time coming soon.  (New sign ups cost $199.00 each and includes food and drink).

Mail us your payment to PMB 101, 578 Sutton Way Grass Valley Ca 95945. Include your email address and what class (1 or 2) you prefer.

Class 2 is now being scheduled in September as well. (cost $199.00 and ditto above).

Email us who is interested or mail in payment to reserve your spot.

Money Matters airs next week at noon on KVMR FM and news on Tuesdays at 6.00 as usual.

Now here is an article for your enjoyment and enlightenment.

 

Ergo the Euro, we go

 

Greek citizens voted over the weekend to retain at least some sort of financial sanity and the cut back requirements imposed on it by the European Central Bank will most likely stay in effect for now but another vote still has to take place in the Ivory hallways so the world collectively holds its breath.

 

Greek citizens don’t like the cutbacks as not only have they been painful on their pensions and benefits, the cutbacks have hit the economy hard as well.

 

Greek unemployment is horrendous and the economy is getting worse by the day. Since government spending was a big part of Greece’s economy, the cutbacks have actually increased the deficits they were trying to address. This “debt” trap is common place among nations whose governments overspend and the US will eventually face this music as well.

 

For now however, our markets are tethered to the largest banking system in the world and that’s the European banking system (many times larger then ours) and that system is in cardiac arrest due to the many over indebted nations which include Italy, Spain, Portugal, France, Belgium, Greece and a dozen more. Unfortunately the overspending has yielded a combined debt in the area of 4 to 5 trillion and amounts like that make for one hell of a bailout if one can be cobbled together at all.

 

The private mega banks own most of this debt and doesn’t that sound familiar?

 

Now the central banks of the world are talking fancy words like “liquidity, solvency, stability, necessity” and other scary terms to basically prep the worlds citizens (mainly the average working stiff) that another round of “programs and bailouts” is about to commence and although most wont understand the fancy acronyms used nor how they work, they’ll have an idea it means more money to someone else.

 

It will be garnered from the average Joe in the form of higher taxes or eventual inflation and the money stolen will be given to those with much fancier suits and cars then any of us, but what the heck, that’s the way the world works nowadays, where the banks control Wall St, Washington and London Square while Main Street pays for it all.

 

With the housing crisis at bay for now, the Euro crisis is the next reason for them to cheer “for the good of the system” as the Central banks load their arsenals with your money to shower it once again on the banks who “must be saved” at all costs so we can all be.

 

With Spain now rolling over and being much larger then Greece (who roiled markets themselves despite their small size), what already seems like a very large problem is about to get a whole lot larger. Adding insult to injury, Italy is starting to turn blue and combine that with Spain and the possibility of a crisis twice the size of our 2009 fiasco looms more probable with each passing day.

 

And just when you thought it was safe to go back into the water.

 

Keep your eye across the pond, Ergo the Euro, we go.

 

This article expresses the opinions of Marc Cuniberti. Mr. Cuniberti hosts “Money Matters” on KVMR FM 89.5 and 105.1 F on Thursdays at noon. He has been featured on NBC and ABC television and on a host of made for TV documentaries for his economic insights. His website is www.moneymanagementradio.com