Category: Economics & Investing

Day of reckoning for shadow inventory and distressed properties – 40 percent of properties in foreclosure have not made a payment in two years or more. Bill Fleckenstein interviewed about gold and the European credit debacle. (Thanks to J. McC. for the link.) Items from The Economatrix: Trucks, SUVs Power Strong Auto Sales in October No Major Fed Moves Expected Despite Europe Fears Factory Activity Slows as Economy Stays Sluggish Bill Whittle has some biting commentary on the “rich” and “poor” in America.

G.G. sent this for the I-Told-You-So Department: Home prices heading for triple-dip. Mark you calendar for June, 2022. That might be a reasonable date for price recovery, barring a mass currency inflation. But even that of course wouldn’t be a genuine market recovery, when gauged in real home values (adjusted for inflation). Don’t miss this great piece by Thomas L. Friedman: Did You Hear the One About the Bankers? (Thank to Jed F. for the link.) Ben S. sent this: The Inflation Shock and the Fall Melt-Up of 2011 Despite Debt Deal, Europe May Slide into Recession John R. sent …

The New American magazine cites my novel “Patriots” in a recent article on hyperinflation. More derivatives news: Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan. (Thanks to BigTex for the link.) Bob S. spotted this: USDA economic research say CPI of food price to rise 3.5% – 4% in 2011. Reader AmEx (American Expatriate) was the first of several readers to send this: Three Men Arrested In Nickel Theft At Local Steel Plant Meanwhile, some sad news from England: Thieves desecrating memorials to our war heroes every other day as metal plaques and statues are being sold for …

Ol’ Remus has posted some great observations on the coming hyperinflation Items from The Economatrix: Economy Grew 2.5% in Q3 as Consumers Rebound Rate On 30-year Fixed Mortgage Falls to 4.10% But meanwhile, we read: Contracts to Buy Homes Fell 4.6% in September. (Let’s face it: The real estate market will be broken for at least 10 years.) BNY Mellon Slaps Fee on Some Depositors The Great Depression 80 Years Later:  Same Culprits, Same Rage Eurozone “Collapsed,” Euro to Vanish FinansInvest CEO Says Gold, Silver and Fraudulent Investor Traps

Wayne G. sent this: Consumer Confidence Tumbles, Home Prices Stagnate Another flagged by veteran SurvivalBlog contributior G.G: All American Bank Fails; 2011 Tally at 85 RBS found this one: Americans ‘Hooked on Government’ as Record Number Get Benefits (Businessweek) Items from The Economatrix: Poll:  Many Boomers Staying Put Amid Bad Economy New-home Sales Tick Up as Builders Slash Prices Savers Protect Your Deposits from Bankrupting Banks and Quantitative Inflation Tomorrow’s EU Summit Meeting Cancelled; Gold and Silver Skyrocket on News We Are Saved Again By More Paper Injection / Gold And Silver Rebound To Score Higher Levels GDP Grew 2.5%, …

G.G. sent a piece by Andy Lees: Quantitative Easing!!! Dollar Decline in Full Swing in Risk-On Environment Data suggests inflation on the way. (Thanks to B.B. for the link.) Also from G.G.: Inflation Concerns Go Beyond Rise in Consumer Price Index File under “Fragile Global Supply Chain”: Thai Floods Reach Toyota Plants in Indiana, Kentucky, West Virginia and Ontario Items from The Economatrix: Weiss Final Warning to All Investors: Get All or Most of Your Money Out of Danger Immediately… Silver Waits To Begin Break-out Gold Market Update Inflation Up Globally Claims For Unemployment Aid Dip But Remain High Stocks Turn …

Charley S. pointed out this interesting essay: Don’t Blink! The Hazards of Confidence. And a related article, courtesy of Patrick S.: Can a monkey pick a hedge fund? Merkel wants ‘permanent’ supervision of Greece, warns of war. (Thanks to Pierre M. for the link.) John S. flagged this: Yuan Gold Contracts a Step toward Reserve Currency ‘Unknown territory’ for Europe if summit fails: France. ( A hat tip to John R. for the link.) Items from The Economatrix: FedEx Sees E-Commerce Driving Record Holiday Volume Just In Time For The Holidays: A Bad Economic Mood Gas Price Could Slide Another …

Commentary from George Maniere: Silver Waits to Begin Breakout G.G. sent this: Expect more QE from the Bank of England Also from G.G.: US States are Facing Total Debt of Over $4 Trillion. Get ready for higher taxes and creative “fees”. And from B.B.: Rustling costs ranchers millions in poor economy Erik B. mentioned that Glenn Beck has been trumpeting the derivatives time bomb. (Much like I have, since the early days of SurvivalBlog.) Items from The Economatrix: Stocks Mixed On Stronger Earnings, Europe Reports Help for Underwater Homeowners Unveiled Merrill Lynch Warns of Another US Debt Downgrade Wal-Mart Offers …

Some recent data on the income decline in America illustrates that we are indeed in the early stages of an economic depression. There is an ocean of red ink that needs to dry out. And that might take two or three decades, folks. Diana was the first of several readers to mention this: Vatican urges economic reforms, condemns collective greed Mark L. pointed me to a new piece by Ambrose Evans-Pritchard that has some positive comments on investing in America. Yes, Things are so fouled up in European financial circles that they even make the U.S. look relatively safe and …

Mr. Rawles, Regarding the letter “Sorting Canadian Pennies“, I wanted to correct some errors for those Canadian nickel collectors out there.  The nickel from 1922 onwards to 1982 was made from – you guessed it – nickel (99.9% Nickel to be exact; with the exception of some years in the 1940s and 1950s when they were made of a either copper-zinc alloy (tombac) or chrome plated steel.  This was because nickel was in short supply for the various war efforts. The Canadian nickel’s composition changed in 1982 to the cupronickel composition used presently in the US (75% copper, 25% zinc); …

Top hedge fund manager: Decade of doom ahead. “Ray Dalio, founder of the largest hedge fund in the world (Bridgewater Associates), said the world debt is so large it will take 10 years to de-leverage it — and “there are no more tools in the tool kit” to postpone the inevitable reckoning.” JWR’s Comment: I think two decades might be more accurate. Ben S. sent this: Purdue expert: Cost to grow crops to surge in 2012 Fed’s Yellen: QE3 May Be Warranted. JWR’s Comment: Of course they’ll do it. Free money is more addictive than crack cocaine. Over at Fierce …

SurvivalBlog’s G.G. sent this: Monster Prediction From BofA: Another US Debt Downgrade Is Coming In Just A Few Weeks Bob G. mentioned a great Graphic of the European Debt Crisis Savings Experiment: Bagging the Best Deals on Groceries Items from The Economatrix: Berlin Experts Fear Euro Break-up From Bail-out Escalation EU Bank Failures Will Crash Wall Street US “Misery Index” Rises To Highest Since 1983 Merkel Takes Aim at Italy With Demand That Euro Members Live Within Means

John Mauldin asks: Can Hyperinflation Happen in the US? Clarke and Dawe explain quantitative easing. (Thanks to “The Other D.F.” for the link.) G.G. flagged this: Banks closed in Florid, Georgia; 83 have failed in 2011 Items from The Economatrix: Stocks Rise Sharply On Solid Corporate Earnings First Half of 2012:  Decimation of Western Banks The Coming Derivatives Crisis that Could Destroy the Entire Global Financial System Does One “Super-Corporation” Run The Global Economy?

G.G. flagged this: First look at US pay data, it’s awful Brian H. mentioned: Denninger’s timeline for collapse. The Ranks of the Underemployed Continue to Grow. Would You Do Your Banking at the Post Office? Dylan Ratigan gets his ranty Wookie Suit on, on MSNBC Paul H. sent this: FOREX: Dollar slumps to record low versus Yen Items from The Economatrix: Fed Survey Suggests Hazy Outlook for Economy Consumers Paid More for Food, Gas in September Oil Prices Little Changed on Government Supply Reports The Student Loan Bubble Exceeds All Credit Cards The Age of Bank Failures