Fractional Reserve banking

Zeitgeist has a video that is quite long but at the beginning discusses the Fractional reserve system.  this has a bearing on REIT stock as well as silver and gold. basically it says the monetary system we have now is un-sustainable. I say in my commentary we should all have some silver and or gold in our portfolio to protect our value. Here is a link to the video:       http://www.zeitgeistaddendum.com/    ( click on the eye)

I am not associated with the makers of this video but it is thought provoking.  There are some things we do in society that are unsustainable:

1. Eating meat- uses up resources needed by the starving and is unethical-raises commodity prices

2. a monetary system based on debt or money not backed.

3. our transportation system and energy usage

4. The way our religion is run and imposed on people as fact when it is frequently not.

5. Industry  does not produce economical products and wastes resources.

I do not advocate tha the end of the world is coming or that there will be a crash or disaster but being the population of earth is so great we will have to address these problems or else our quality of life will deteriorate.  The longer we wait the harder it will be to fix the problems--I think people will wake up though.

REIT stock Bedford report

Some preassure on the stock prices came today due to the possibility of future interest rate hikes. ARR is down $.09 but AGNC was not affected. The ARR portfolio may actually be somewhat less affected due to the adjustable ARM mortgage backed securities they have. If you have a fixed rate mortgage but have to pay more for the short term loan then the spread earned will be less unless leverage is raised. ARR has a thinner trading market and less time on the market with dividends.   CIM $3.94 +0.00,  ARR $7.58 -$.09,  AGNC $30.00 +.03, IVR  $22.83 -$.12.

CIM insider buys, Market still hemoraging silver.

CIM:
Officer Woschenko, Christian bought 20,000 CIM  at $3.94, presently holds 158,973 shares 2011-5-6

Lambiase, Matthew, Chief Executive Officer, bought 50,000 CIM at $3.92, has 465,000 shares 2011-5-6

10:46am silver is down $1.86 to $33.17, gold $1498

Hearing stories on blogs that ARR has not fully deployed the last offering cash yet, they think there will not be another offering since they still have cash. I called them, all cash was deployed back in April, as soon as they get the money they can invest it. They do not want to offer shares below book value, personally I do not think they will do an offering in the next several days. I think it will have to go above or near $8 before they do an offering. IVR beat earnings estimates by $.01 a few days ago.

News on silver, gold, and REIT dividend stocks

REIT stocks are Real Estate Investment trusts that you can buy shares in on the stock market.

Silver Kitco.com chart showing recent drop from $49 range to mid $30s see details on page 1. bottom of page.

Dollar Index Link:
http://quotes.ino.com/chart/?s=nybot_dx