Links – 03/04/07

New Century Financial goes under(BBC)

New Century Financial, one of the largest sub-prime lenders in the US, has filed for Chapter 11 bankruptcy. New Century sought protection from creditors after it was forced by its backers to repurchase billions of dollars worth of bad loans.

Subprime mortgage bond sales plummet(bloomberg)

Sales of bonds backed by subprime mortgages are tumbling as investors and bankers, concerned about rising delinquency rates, pull back from what had been one of Wall Street’s fastest growing businesses. About $79.3 billion of securities backed mainly by loans to people with poor credit or high amounts of debt were issued this year, down 37 percent from $125 billion in the same period last year, according to a March 30 Citigroup Inc. report.

Mining Reopens(BBC)

Hatfield Colliery near Doncaster, which closed in 1994 when the coal industry was privatised, becomes the ninth deep shaft coal mine operational in the UK. Rising prices of coal and other forms of energy on world markets have made mining a realistic prospect again.

Stocks are cheap(wisebread)

The ten year bond in the US is currently yielding 4.71%. The current forward PE is around 15 which results in a stock yield of 6.71%. Not exactly but I’m using their numbers. So you can invest in a bond and get 4.71% or stocks and ‘get’ 6.71%.

Sensible survival Advice(conservemagazine)

“As we begin to shift back to a more nature-based life rhythm, following the seasons and the flow of the day, we’re going to find we have more time. We’ll have time to do skills like painting, knitting and art that we have lost. It’s going to create a happier population.”

Key Reversal for gold(goldprice)

Even if it had been a key reversal today, that would only mark the first half of a key reversal: break into new low territory for the move & a higher close, followed by a higher close the next day. Numbers I am watching are 667 for gold and 1340 for silver. Metals need to clear those levels this week.


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