Jason Tillberg

Fannie Mae (FNM +6.4%) unveils a special approval process to make it easier for Florida condo buyers who don't meet requirements to qualify for funding. The initiative aims to provide support "for Florida's distressed condo market," Fannie says. The special rules come even as Fannie struggles to contain massive losses from rising defaults and foreclosures.

2012 will be a complete disastrous year when all these ships hit the sand.

Dec. same-store sales (actual vs. Briefing.com estimate), update #2: AEO +7% vs. +2.1%. APP -5% vs. -5%. ARO +10% vs. +3.3%. BJ +4.8% vs. +4.7%. BONT -2.6% vs. -3%. CATO +7% vs. 0%. DDS -7% vs. -7.5%. JCP -3.8% vs. -4.1%. SKS +9.9% vs. +2.6%. TJX +14% vs. +5.5%. 0 misses, 9 beats.

Personal Income for November was the highest it's ever been despite U6 Unemployement at 17%.

Gov't handing out money willy nilly.

Oh, Joy: Joy Global Hits Buying Point

The 7x book value concerns me. There is a lot of uncertainty ahead and the possibility of more "ships to hit the sand" this year could once again sends stocks crashing down again. The margin of safety I look for is the price to net tangible asset value. Earnings look sound here, and fundamentals look good, but any hic cups could spell trouble for stocks selling at huge premiums to net asset value.

Dec. ISM Non-Manufacturing Index: 50.1 vs. 50.4 expected and 48.7 prior (>50 denotes expansion). Prices index rose to 58.7 from 57.8. Employment rose to 44 from 41.6. New orders fell to 52.1 from 55.1.

I think we'll see leading indicators begin to point to double dip shortly.

home starts down, stock markets should begin to stall/go down, new orders down.. these should show and end to the sugar high of phantom money stimulus.

Bill Gross' January Investment Outlook: "If 2008 was the year of financial crisis and 2009 the year of healing via monetary and fiscal stimulus packages, then 2010 appears likely to be the year of exit strategies, during which investors should consider economic fundamentals and asset markets that will soon be priced in a world less dominated by the government sector."

Does that mean they should sell their shares in AMZN at 16.5x book value and 80x earnings or SPG at 57x earnings and a dividend yeild of only .61%?

Disclosure: No position in AMZN, Short SPG

Gary Gensler, head of the CFTC, calls for direct regulation of derivatives dealers. "Leading up the financial crisis, it was assumed that the banks that deal in derivatives... did not need to be explicitly regulated for their derivatives transactions," but this was a "flawed assumption."

I have very low expectations for this administration to come close to regulating the actions of the big banks. Let's be honest here.

Futures are indecisive with a slight negative tilt following further improvements in employment data from ADP and Challenger. S&P -0.2% to 1,130.50. Meanwhile, mortgage applications nudged higher even as mortgage rates continued to climb, with the 30-year fixed hitting 5.18%.

Ouch on that yield rise.. I better buy soon. 20% down of course.

Agri / Food / Beverage Stocks Offer Investment Opportunities Amidst Global Food Shortage

Thank you for the list. What I can say is my own garden was a bust last summer due to way too much rain in June and not enough sunlight. I got some string beans and a few tomatoes.

I have been reading about 20% + food inflation in India.

.. Am worried about inflation in food and energy.

WSJ editorial recaps the "Christmas Eve taxpayer massacre" at Fannie Mae (FNM) and Freddie Mac (FRE), singling out the CEOs as the "world's most overpaid bureaucrats," and saving special attention for the human resources chief at Freddie - the $2.7M-compensated Paul George: "It must require a rare set of skills to spot executives capable of losing billions of dollars."

In writing the book, "Money and Man, A survey of the Monetary Experience" Elgin Groseclose, the author, concluded that throughout civilization, that the soundness of a nations currency was in direct relation to the soundness of a nations government.

Our money today has zero intrinsic value. We don't have sound money hence we won't have sound government.

A Look Back at 2009, A Look Ahead at 2010

$15 billion a month in unemployement checks coming from borrowed money being plowed directly into the economy should prove inflationary. (10 million currently getting unemployement from state or emergency from federal gov't. at some $1,500 a month)

Ben is in essence dropping money from helicopter.

Over 37 million getting food stamps. Mind you we have to borrow this money.

Interest rates should/must rise.

The Final Charts of the Decade

22.95% bearish on AAII today. That tells me the top is getting very close. Either at or close to I think. 2% dividend yield on S and P 500 is pathetic too.

U.S. Debt Scheme: Is It All Just a Ponzi Scheme?

This is a critical issue and the nation is simply not educated enough to understand the importance of sound money. The soundness of a nations currency is in direct proportion to the soundness of a nations government. Man are we screwed.

At the time of our country's founding, we had MEN who were far more righteous. The coinage act of 1792, section 19, stated:

Section 19. And be it further enacted, That

basing the coins. if any of the gold or silver coins which

shall be struck or coined at the said mint

shall be debased or made worse as to the

proportion of the fine gold or fine silver

therein contained, or shall be of less weight

or value than the same out to be pursuant to

the directions of this act, through the

default or with the connivance of any of the

officers or persons who shall be employed at

the said mint, for the purpose of profit or

gain, or otherwise with a fraudulent intent,

and if any of the said officers or persons

shall embezzle any of the metals which shall

at any time be committed to their charge for

the purpose of being coined, or any of the

coins which shall be struck or coined at the

said mint, every such officer or person who

shall commit any or either of the said

offenses, shall be deemed guilty of felony,

and shall suffer death.

Today, we try and pull this Phantom debasement BS and the man behind the curtain gets "Man of the Year" award.

Expect More Bailouts in 2010

As the monetary aggregates explode and the industrial production that supports civilization collapses, this system collapses entirely via a hyper inflationary blowout. Precisely what happened in Germany in 1923.

The soundness of a nations currency is in direct proportion to the soundness of a nations government. Daryl is right to expect more bailouts which in turn will require direct debasement of our currency.

Debasement of our currency was in 1792 in the coinage act, section 19, penalty of death. Today, it gets you the man of the year award.

Hedge fund manager Eric Sprott, whose fund returned 496% over the past nine years, says investors are delusional. "We're in a bear market that will last 15 or 20 years, and we've had nine of them." Sprott predicts the S&P will collapse below its March low of 676.5, while gold (GLD) is the only asset about which he remains positive.

78 million baby boomers aged 47-62 today. They are beyond peak spending and should be done buying stocks and instead be buying bonds for the next 10 years+. Revenue growth will be anemic relative to past 30 years based on this generation alone.

That was the greatest consumer generation the world has ever known.

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It's time to get out of bonds, strategist Dan Deighan of Deighan Financial Advisors says. The economy may be able to withstand the coming rise in interest rates, he says, but "there is going to be a meltdown in the bond market." Presently, March 30-year bonds are +0.22% at 115-08. The rest of the curve is flat.

Still tremendous risks in all asset classes.