Category: Economics & Investing

A reader asked me clarify what was meant by “exiting the market.” It’s important to know the difference between exiting the stock market and taking distributions from their tax-deferred retirement accounts (IRAs, 401(k) accounts, and so forth.) It is possible in most cases to exit the stock market without taking distributions from those accounts. They can simply change (“re-allocate”) the investments inside those accounts. For example, an employee might re-allocate her 401(k) at work from a stock mutual fund into a money market fund. This is not a taxable event, as long as the money remains in the 401(k) plan. …

The National Inflation Association recently posted this article: Decoupling Now, Currency Crisis Soon Reader J.D.G. notes: “The County Landfill had a punch card system that equated to $3.83 per load for household trash. If you went every week, it would cost you approximately $200 a year. The County did away with the punch cards at the end of the fiscal year with about six months notice. All the folks who bought extra punch cards to “lock in” the price rightfully howled. The new fee is $7.00 per load, an 82% increase. Going every week will now cost you $364 per …

Frequent content contributor Jeff B. sent this: US Said Preparing New Laws to Seize Americans’ Retirement Accounts. As I’ve written before: Governments at all levels will be desperate for revenue, throughout this currently unfolding depression. Expect them to find new and creative ways to pry into your wallet. Stock markets face a ‘bloodbath’, warns SocGen strategist Albert Edwards. (Thanks to Jon M. for sending that link.) Reader S.M. sent: What the Double Dip Recession Will Look Like This was inevitable: ‘Jingle Mail’: Developers Are Giving Up On Properties. (A hat tip to David W. for the link.) The BHO Administration’s …

The Old Farmer wrote: “I’ve been buying a Whopper Jr. and a small bag of French fries from the Dollar Menu at Burger King for about two years now on my way home from an extra-long shift that I do off farm. It’s been $2.12 for so long I kept dimes and pennies in my change holder. This week the dollar menu was gone. The same meal was now $2.43. That’s a ‘whopping’ increase, without getting out the calculator, that is about 15 percent.” Tony on Colorado mentioned: “You may be interested in taking a look at the web site …

I spotted this linked over at The Drudge Report: Dow Faces Bouncy Ride to 5,000: Strategist The trillion dollar bailout you didn’t hear about – Commercial real estate values plummet again yet banks hide losses. (Thanks to B.B. for the link.) J&M suggested a piece by Rick Ackerman: Few May Imagine What is Coming Erik M. flagged this: Global outlook casts shadow over Fed retreat. Erik’s comment: “Sounds eerily familiar to parts of Chapter One of a book I’ve read a couple of times.” Items from The Economatrix: Stocks Slip as Caution About Economy Returns Scarcity of Jobs Put More …

Sheryl N. wrote: “There is a nice discussion over at Homesteading.com about the various tricks used nowadays to shrink the content of a package without looking like it, reducing portion amounts but charging the same, et cetera.” Frederick D. flagged this: Health Insurance Costs Expected to Rise Sharply in 2011. (I pity those who bought in to the propaganda that health care costs would go down under Obamacare!) John M. in Florida notes: “I have recently bought quart-sized containers of different brands of yogurt at the grocery store and noticed that the level of yogurt was about an inch below …

Silver Bags See New Demand. (Thanks to B.B. for the link.) Home Sales Plunge 27 Percent to Lowest in 15 Years. B.B. sent this: Unemployed group blasts Geithner’s handling of economy C.P. sent us this: Gold: Safe Haven, Next Big Bubble or Something in Between? Items from The Economatrix: Ambrose Evans-Pritchard: BofA Sees US “Double-Dip” Danger (Danger? Count on it!) Mortgage Lending Falls by 20% on New Recession Risks Three Devastating Tax Waves Will Destroy Many 2011 W-2s Will Include Employee Health Insurance Cost as Income Thousands Still Losing Homes in Tampa, Florida Euro Crisis Has Not Gone Away, it …

Maddie wrote to mention: “I bought my normal brand of 12 double rolls of toilet paper and noticed when I put it next to the others [I had bought previously] that it was shorter. The package went from 501 square feet down to 400 square feet for about 50 cents more. The tissue squares are also now 4″x4”. From G.G.: Inflation may push rates up to 8%. Angela wrote us: “I was in Costco yesterday, and took a look at a couple of staples to gauge price increases. SPAM is up 6% from $1.99 to $2.12 in the last year. …

Economy Caught in Depression, Not Recession: Rosenberg. (Sent by several SurvivalBlog readers.) Morgan Stanley Says Government Defaults Inevitable B.B. sent this: Foreclosure Study Shows Dramatic Value Drop Trent H. forwarded this must-read article: “Enron accounting” Has Bankrupted America; U.S. Deficit Really $202 Trillion Kotlikoff Says SIG flagged this: Hussman Funds – Weekly Market Comment: Why Quantitative Easing is Likely to Trigger a Collapse of the U.S. Dollar Items from The Economatrix: Low Pension Return May Soak New York Taxpayers Two People Sign Up for Obamacare in New Jersey Investors Have Withdrawn a Staggering $33.12 Billion from Mutual Funds in 2010 …

Several readers sent this:news item: What’s the Beef? Food-Inflation Fears G.G. sent this: How Hyperinflation Will Happen. Flavio sent this linkio: Mortgage Interest Rates May Hit 14 Percent Within Two Years. Flavio’s comment: Anybody who has a mortgage with a variable rate or which must be refinanced at a later point before it is paid off needs to get out of that type of loan and into a fixed rate loan if at all possible. Or you had better dig through your loan paperwork and find out what the cap on the interest rate is, because there is a good …

J. in The East suggested: Rethinking Gold: What if It Isn’t a Commodity After All? EMB sent us this from the Calculated Risk blog: Unofficial Problem Bank List increases to 817 institutions. G.G. sent this: 15 Signs the U.S. Housing Market is Headed for Complete and Total Collapse. Items from The Economatrix: Jobless Rate Drops in 18 States, Rises in 14 Gasoline Prices Should Fall After Labor Day Stocks Slide as Investors Continue Sell-off Fidelity: 401(k) Hardship Withdrawals, Loans Up Investors Defensive With Data in Focus Return of the Great Bond Conspiracy World Stocks Slide on Economic Worries This Economy …

News from England: Interest rates ‘may reach 8% by 2012’ adding £900 to the average mortgage as economists warn of need to curb ‘runaway inflation’. (Our thanks to Jean S. for the link.) Doug D. wrote to report: “I found a Costco receipt from three months ago, so decided to compare prices on similar items. What I found was shocking: + 5.7% – Bounty Paper Towel. Reduced from 968 sq ft to 915. + 8.2% – Charmin Toilet Paper. Reduced from 937 sq ft to 866. + 6.6% – Frozen Blueberries + 6.9% – Batteries, AA – 2.5% – Batteries, …