All Chips In For The Barrick Gold

All chips in for the Barrick Gold. The largest gold producer in the world plans to issue new equity to terminate hedging contracts.  Brave. We will see if it pays off. Reuters story: Barrick to sell $3 billion in stock to buy back hedges

Major news yesterday was consumer credit decline. Reuters story:  July consumer credit falls a record $21.6 billion It’s obvious that consumer credit/spending fueled recovery is not at the moment on the table.

Extension of the consumer credit/spending story. FHA loan (federal assistance mortgages) market share has reached 23% from 3% three years ago while 7.8 percent is either in foreclosure or 90+ days default. WSJ story: Behind FHA Strains, a Push to Lift Housing. And, also interesting is that the outstanding balance of interest-only mortgages is 908 million. So, morgadge resets will provide stedy stream of foreclosed homes to the market. NYT story:  As an Exotic Mortgage Resets, Payments Skyrocket.

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This entry was posted on Wednesday, September 9th, 2009 at 6:34 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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