Economics and Investing:

E.L. sent us the link to this “must watch” seven minute video clip of from Fed Chairman Paul Volker. It has some interesting nuggets and is a somber assessment of the unfolding global economic collapse.

Reader “Darth Paul” mentioned a video clip of an ex-IMF Chief Economist. Paul’s comment: “I especially got caught up at 6:40 on the counter: “Obama’s and Geithner’s choices for administration? It’s a huge problem!”, “I’m trying to be positive but my intuition from crises is that this is gonna get a lot worste…we are going down a long, dark, blind alley”.”

Mark in Michigan flagged this: Crime spike attributed to economy. Mark’s comments: “This was an interesting story that exhibited two important things. One, there is indeed a thin veneer to civilized society. Two, it’s important to have and be good neighbors.”

Items from The Economatrix:

Asia Stocks Fall Heavily on Growing US Fears

ECB Faces Mutiny From Bank Governors

Alarm Over Europe’s Credit Contraction

Government Says “Mass Layoffs” Soared in January

UK: Savers Withdraw Record Amount From Banks

Banks Face New Wave of CDS Losses, Analysts Warn (Hmmm…JWR’s 2006 warnings about dervatives are coming true.)

German CDS Debt Spreads Hit Record as Economy Crumbles

European Banking Bailout Threatens Common Market, Finance Baron Warns

Japan’s Exports Nearly Halved in One Year

Japanese Carmakers Slash Production By 50%

Russian Economy Hit by 8.8% Decline

Latvian Debt is Rated Junk Status

Russia: Problems Rise with Falling Oil Prices

Government Digs a Deeper Hole

Defaults by Franchisees Soar as Recession Deepens

Bankrupt Delphi Told it Can Cancel Retirees’ Benefits