Category: Economics & Investing

Hugh- I wanted to know what you and/or Jim’s and/or The Econocobas’ opinion is of reverse mortgages. The missus and I have moved to the Redoubt and own our location outright. I was mentally extrapolating the possible outcomes of a reverse mortgage should the balloon go up, but I always value other people’s thoughts. Also, forgive me if this has been addressed previously. – D in Southern Idaho HJL Responds: I have never considered reverse mortgages, as I always considered the land worth something but the cash out value as a loss due to inflation. Call me old fashioned, but …

House of Cards – Will It Collapse? “It is unwise to scramble in front of an oncoming steam-roller in search of dollar bills when real money, gold and silver, is still available at “bargain” prices.” – Gary Christenson o o o Capital Controls, Gold Confiscation, Bank Holidays, and Everything Else o o o You can’t afford to live in California: It would take the typical family 35 years just to save for a 20 percent down payment in San Francisco. o o o U.S. Farmers In “Dire Straits”: JPM Warns Of Imminent Liquidity Crunch

Global Debt Now At $200 Trillion o o o Student and auto debt fuel credit bubble 2.0: Student loans carry the highest delinquency rate of all debt classes. Student and auto debt up $1.15 trillion in last decade. o o o Here’s how Americans are eating into their savings . – H.L. o o o Items from Mr. Econocobas: Moody’s Downgrades Chicago Debt to ‘Junk’ with Negative Outlook Five Reasons Chicago Is in Worse Shape Than Detroit 5 Big Banks Expected to Plead Guilty to Felony Charges – And not much of anything will happen U.S. Retail Sales Disappoint Again …

Imagine a Perfect World… and Wake Up o o o Why Is The U.S. Importing So Much Silver Bullion?? o o o The real sign that Greece’s financial turmoil is getting worse. – JBG o o o Ban cash, end boom and bust. – D.S.

Almost Half Of US States Are Officially Broke. – B.B. o o o Is There Any Gold At Fort Knox? Survey Says “Highly Unlikely” o o o Items from Mr. Econocobas: Class Of 2015 Sets Student Debt Record—–$68 Billion Bonds Extend Global Decline as Goldman Warns on Long-Term Debt ‘The Crash” Will Not Be Caused By An Event… Greece Effectively Defaults To IMF Using SDR Reserves To “Repay” Fund; 1 Month Countdown Begins – This is getting very serious; I don’t know how it is going to end, but I suspect somehow things are going to get pulled together and …

Gold Prices In 2020? Debt Drives Gold and Stocks o o o Russell Napier Explains What’s In Store For Gold If Cash Is Outlawed. – D.S. o o o Items from Mr. Econocobas: The Graccident Hour Draws Nigh Greece Hopes for Helping Hand as IMF Bill Looms No Deal: Eurogroup Concludes Meeting On Greece, No Further Fund Disbursement The Situation Escalates – Greece Is Now Taxing Cash Withdrawals

Oil Markets Have Little To Fear From Iran For Now o o o 34 percent of Americans financially carry the country: Those not in the labor force hits another record at 93,194,000. o o o The Dow has now gone 37 days without setting a 1-month high OR low, the longest streak in over 100 years o o o Items from Mr. Econocobas: Video: Philip Haslam: When Money Destroys Nations

Edgebrook Bank, IL, Closed by Regulators – Fifth Bank Failure of 2015. – G.G. o o o AIIB, SDRs, and the Yuan – Latest Developments. – JMC o o o By a 2-to-1 margin, Americans are more worried about economic mobility than the income gap

This is a Major Buy Signal for Gold o o o Rental Armageddon continues: Federal Reserve shows housing to be a big push in household net worth yet we are hitting a generational low of actual homeownership. o o o Items from Mr. Econocobas: Oil Price Recovery May Be Too Much Too Soon – This is an interesting read for sure. Part-Time Jobs Soar By 437,000; Full-Time Jobs Tumble, Stay Firmly Under Pre-Recession Highs Video: How Will Fed React to Jobs Data? – Rick Santelli puts it all in perspective here at the end. Japan National Debt Rises To ¥1,053,357,200,000,000

Denmark moves closer to a cashless society. – G.G. o o o Why The Student Debt Bubble Is About To Get A Lot Larger o o o Items from Mr. Econocobas: PETER SCHIFF: We’re Not Headed for a Fed Rate Hike — QE4 Instead Layoffs Hit 3-Year High in April as Energy Cuts Surge Hold Precious Metals As Banks Try To Criminalize The Use Of Cash US Macro Data Has Never Collapsed This Fast

Greece introduces cashpoint tax in desperate bid to raise revenue and stop run on banks as country teeters on brink of bankruptcy. – G.G. o o o It begins: US government issues $700,000 fine against a digital currency. – S.B. o o o Inspector General: IRS Allowed $5.6 Billion In Erroneous Education Tax Credits. PLC o o o What’s the Cash Value of Your Vegetable Garden?. – D.S. o o o Items from Mr. Econocobas: Blame the next global financial crisis on the U.S. dollar– More like blame it on central banks and central planning

The War On Cash: Transparently Totalitarian. – G.G. o o o End of cash?. – D.S. o o o Items from Mr. Econocobas: Video: Peter Schiff – FOMC Rate Hike Hints are a Bluff – The best part is when the commentators say, “The market has rallied on 3% or 4% before, so why couldn’t it now.” This just shows the fundamental lack of understanding of debt and interest payments. Venezuela opposition leader says Jan-April inflation 50 percent Greece Attacks Creditors as ECB Considers Next Liquidity Step (includes video)

Silver and NASDAQ – Long, Medium and Short Trends o o o U.S. Sanctions & Saber Rattling Doesn’t Stop The U.S. From Importing Russian Petroleum o o o Items from Mr. Econocobas: Video: Peter Schiff – Will the Fed Run Out of Excuses as the Weather Warms? The Forecast That Nailed Q1 GDP Isn’t So Rosy on Q2 More Americans Spending at Least Half Their Pay on Housing

1 in 4 US Renters Must Use Half Their Pay for Housing Costs. – H.L. o o o Bail-ins: 401k? – Gone; Pension? – Gone; Savings? – Gone o o o Even Small Businesses Are Jumping on the Robot Bandwagon. – D.S. o o o How student-loan debt is dragging down the economy

Major U.S. Retailers Are Closing More Than 6,000 Stores. – B.B. o o o Since the late 1980s, panicked governments have responded to slowdowns by herding their most vulnerable savers into excessively risky assets and then pulling away the football. And every time the same groups fall for it. o o o Is The US Worried About Oil Sector Jobs? It Should Be! o o o Consumers Near Collapse?. – Mr. Econocobas