Category: Economics & Investing

Rhonda T. suggested a New York Times slideshow on Stockton, California’s bankruptcy. Steven M. sent: Subterranean Swiss Hotel Sells for Shocking Price. “In what may be the deal of the century, a lucky buyer paid just $1,020 at auction for a luxury underground hotel in Switzerland worth an estimated $3.8 million. However, keep in mind, it IS a former artillery bunker.” G.G. sent this: Regulators close five small banks in Georgia, Florida, Kansas, Illinois for total of 38 US failures in 2012   Items from The Economatrix: One-On-One With Craig Roberts #2:  Libor Fraud Now Part Of The System S&P …

Reader M.E.W. suggested: The Federal Reserve Is Not Going To Save Us From The Great Depression That Is Coming Default? U.S. Post Office Might Miss Retirees’ Payment. (Thanks to SurvivalBlog’s G.G. for the link.) Items from The Economatrix: Psychopaths Caused The Financial Crisis…And They Will Do It Again And Again Unless They Are Removed From Power Beginning Sovereign Debt Crisis Endgame, Attack of the Zombie Banks and the New Religion of Europe These 12 Hellholes are Examples of What the Rest of America Will Look Like Soon Bad Economic Signs 2012s

The “well funded” Social Security myth: $20 trillion timebomb. (Thanks to G.G. for the link.) Reader AmEx sent an article by Paul Farrell: How Bernanke will cause the next crash before 2014 Over at Alt-Market: Bad Economic Signs 2012 Ol’ Remus of The Woodpile Report alerted me to an article wherein Karl Denninger summarizes the enormity of the LIBOR scandal: So I Need To “Be An Adult” About Fraud Eh? Here is a key quote: “There are hundreds of trillions of dollars of interest-rate derivatives linked to LIBOR, directly and indirectly. A 1% move would be something like $3 trillion …

Economist Duncan: Next Depression May Be So Severe Civilization May Not Survive Don’t miss this important news spotted by G.G.: Here Comes the Catch in Home Equity Loans The twin lost decades in housing and stocks – baby boomers selling homes to a less affluent young American population. The impact of baby boomers on the housing market. Reader Sue C. sent this: IMF cuts global growth forecast as emerging economies slow Items from The Economatrix: Why Gas Prices Are Heading Back Up IMF Cuts Global Growth Forecasts As Emerging Economies Slow America Heading Towards A Collapse Worse Than 2008 AND …

B.B. suggested: Don’t fear the fiscal cliff — fear the welfare cliff Sue C. spotted this item: Political feuds, denial drove San Bernardino to bankruptcy SurvivalBlog’s G.G. suggested this by humorous economic commentator Richard Daughty (“The Mogambo Guru”): So Freaking Obvious (SFO) Items from The Economatrix: When Bankers Get Nervous, Watch Out Retail Purchases In U.S. Unexpectedly Decrease 0.5% Oil Declines From Seven-Week High Amid Global Economic Concern Fewer US Companies are Planning to Hire

Those pesky derivatives: How Jamie Dimon hid the $6 billion loss The latest from Yohay at FOREX Crunch: US Gained Only 12,000 Jobs in May According to Bernanke’s Highlighted Indicator Steven M. sent this: It’s Not Just Free Cell Phones… The Government Is Handing Out Free Air Conditioners Too. JWR Adds: Oh, and to make it even worse, the LG Global Electronics brand air conditioning units they are giving away are made in China. (“Your tax dollars at work.”) Items from The Economatrix: Jim Willie:  Extreme Danger Signposts Gold 22% Rally to Record Seen by Eric Sprott:  Commodities Buffet Says …

Six charts that show the Welfare State run amok. (Thanks to SurvivalBlog’s Poet Laureate G.G. for the link.) Doug C. sent this: Is Bankruptcy Coming to a City Near You? The looming student loan bubble – Almost half of all student borrowers were not making payments. 1 out of 4 in debt repayment past due on student debt. G.G. sent this: Gold for Oil: Turkey has exchanged nearly 60 tons of gold for several million tons of Iranian crude oil, despite its promises to uphold Western sanctions on Iran’s energy sector Items from The Economatrix: Inflate Or Die Four Reasons …

Dominique de Kevelioc de Bailleul: Gold Prices: Brace For Bizarre QE3 Hail Mary and Hyperinflation Gold to Hit $2000 on Fed Easing: Merrill John Embry – Hang On Because The Chaos is Going to Accelerate Jim Rogers: Duck and Cover, Your Cash Is NOT Safe; Buy Physical Gold Where are the markets heading? The chartists are uncertain. (JWR’s Comment: It is difficult to predict manipulated markets. In the era of Quantitative Easing (monetization), ALL markets are manipulated to some extent.) Items from The Economatrix: We Are Near An Epic Collapse In Confidence Higher US Unemployment In A Year:  Pimco’s Bill …

G.G. flagged this: Bank’s idea for tackling the financial crisis: six bicycles. The article begins: “The Bank of England considered buying bicycles so that its officials could continue to move around in the event of a full-scale financial meltdown, the former City minister disclosed last night.” San Bernardino seeks bankruptcy protection: San Bernardino, facing the possibility of missing payroll, becomes California’s third city in weeks to authorize a bankruptcy filing. FHA bailout inches closer – FHA defaults surge 26 percent while upping mortgage insurance premiums to make loans more expensive. Foreclosure starts outnumber foreclosure sales 3 to 1. RBS sent …

Want Precious Metals? Forget Mines, Go to Landfills. (A hat tip to Diana V. for the link.) C.D.V. sent this: As More Cities Go Broke, Is Muni Crisis Finally Here? G.G. sent this: Arizona Police Bust The Biggest Counterfeit Coupon Ring Ever Also from G.G., a piece about Ka-Bar: Inside The Company That’s Made Knives For The Marines Since World War II Items from The Economatrix: Mish’s Global Economic Trend:  Global Collapse in Auto Sales Coming Up Why The LIBOR Scandal Matters:  Destruction of Confidence to the Nth Degree Was Gold Manipulated Like LIBOR Rates?

Reader B.D. sent this: Spain Will Have to Cede Most Control of Banks: WSJ Terry in Idaho recommended: The Libor Scandal: History’s Largest Market Fraud? Did someone say $800 trillion? The future of futures is uncertain: PFG Collapses Amid Fraud Allegations B.B. sent this over at Noisy Room: Nations will be Nations: ‘Euro Zone Fragmenting Faster than EU can Act’ 21% sales tax! Spain Deepens Austerity Under European Pressure. (Thanks to K.A.F. for the link.) Also from B.B.: Austerity, American Style: Scranton City Employees’ Wages Reduced to $7.25 per Hour – This Is Your Future America A clash of generations …

Some effects of bad monetary policy: The war on baby boomers. (Thanks to C. Matt for the link.) V.T.P. sent this: France is selling bonds at a negative interest rate Roubini: My ‘Perfect Storm’ Scenario Ii Unfolding Now. (Kudos to C.D.V. for sending this link.) Items from The Economatrix: As Foreclosures Ramp Up, New Roadblocks Ahead There Will Never Be Enough Jobs in America Again Government Overpaid $14 Billion in Unemployment Benefits US Economy:  Things Could Get Much Worse