Morning Gold & Silver Market Report – 6/17/2011
GERMANY & FRANCE UNITED ON GREEK BAILOUT - At around 6AM (CT), world equity markets and the U.S. stock market futures began to rise sharply on the news that leaders from France and Germany are united on a new bailout package for Greece. This new package would include voluntary private sector participation based on a 2009 European agreement called the “Vienna Initiative”. German Chancellor Angela Merkel supported this approach as a “good foundation” for a Greek deal. There were reports that Germany wanted to delay a decision until September, so although this approach continues to “kick the can down the road,” equity markets view a deal happening now as a positive.
The Security and Exchange Commission (SEC) may be prepared to file charges against some of the credit-rating agencies for their role in the mortgage crises that lead to the financial collapse. The Wall Street Journal is reporting that the SEC was looking into the conduct of companies including Standard & Poor’s and Moody’s. Many of the mortgage – bond deals that eventually went into default were rated highly by credit agencies. In May, the SEC sought public comment on whether credit rating agencies should be more forthcoming as to how they arrive at their ratings.
Is the current US Housing crisis worse than the Great Depression? According to recent data from Case-Shiller, the answer would be yes. Prices have fallen 33% since the collapse began, which is greater than the 31% fall during the Great Depression. This Case-Shiller data comes at a time when QE2 is about to end and the Federal Reserve must decide if the economy can now stand on its own.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,530.30 (down 10 cents)
- Silver price - $35.55 (down 10 cents)
- Platinum price - $1,754.40 (down $7.30)
- Palladium price - $756.80 (down $8.70)