Category: Economics & Investing

Reader Brad S. spotted this: PIMCO’s Gross: Markets exhibiting “flight to liquidity”. Mass inflation is coming soon, folks. Transition out of dollars and into tangibles now, while it is still affordable! FDIC: Problem banks at 775. “A total of 775 banks, or one-tenth of all U.S. banks, were on the Federal Deposit Insurance Corporation’s list of ‘problem’ institutions in the first quarter, as bad loans in the commercial real-estate market weighed on bank balance sheets.” K. in Montana sent me this one: Whatever Germany does, the euro as we know it is dead Items from The Economatrix: Regulators Shut Small …

Volcker Says Time Is Running Out for U.S. to Tackle Fiscal Woe. (Our thanks to RBS for the link.) Chester suggested this bit of frank commentary: The Morality of the Financial Monetary System is Really What is Broken Brett G. flagged this bit of “recovery” news: Week’s unemployment claims jump to 471,000 Items from The Economatrix: Ticking Time Bomb: $600 Trillion in Derivatives at Risk Next Year’s Federal Budget Sinking in Deep Red Ink Reforming Fannie and Freddie Will Slam Home Prices Germany’s ‘Desperate’ Short Ban Triggers Capital Flight to Switzerland Fading of Inflation Helps Buyers and Borrowers Food Price …

E.M.B. sent a link to a useful US Coin Melt Calculator. Michael K. sent us this: South Africa Fights Rand Counterfeits a Month Before World Cup Brett G. suggested this: Jim Rogers: Even More Currency, Market Turmoil on the Way Andrew H. sent this from Richard Russell, the editor of The Dow Theory Letter: You Won’t Recognize America by the End of the Year. Here are a couple of quotes: “Do your friends a favor… Tell them to get out of debt and sell anything they can sell (and don’t need) in order to get liquid. Tell them that Richard …

Mr. Rawles: Please tell me, what would be the best form to purchase gold to store, that is not a stock [or an Exchange Traded Fund]? I cashed out a penny stock that my father left me, which will cover almost one once of gold. Thanks, – Wendy H. JWR Replies: At the present time, I don’t recommend gold for most investors. Instead, I recommend silver. The silver to gold ratio is currently around 63 to 1, which is way out of whack. It should be closer to it historic norm, which is 16-to-1. This means that gold is relatively …

Dow Crashes About Three Percent as Euro Drops, Jobless Claims Rise Stocks Dive, Dow Off 376 on World Economic Worries C.D. in Northern Virginia liked this piece: One financial doomsday scenario. Flavio sent this linkio: What’s Next – Minor Correction or Major Decline? G.G. flagged this: A surprise jump in UK inflation to 5.3 per cent means that not a single savings account on the market offers an interest rate higher than the cost of living. Items from The Economatrix: Merkel: Bailout has Bought Only Time, Not A Solution Soros Sees No Bottom to World Financial Collapse US Consumer Prices …

G.G. flagged this from Mish Shedlock: Illinois Doesn’t Pay Bills; Crisis Pushes Businesses to Edge of Bankruptcy Also from G.G.: Germans lead gold rush frenzy Chad S. sent this one: GM wants more subprime buyers; will lender agree? Also from Chad S. come this article from Detroit, Michigan: Landscapers find workers choosing jobless pay Items from The Economatrix: Lloyd’s of London Warns of “Perfect Storm” Threat to Insurers Markets Plunge as Merkel Delivers Euro Warning and Bans Short Selling Congress Blocks Indiscriminate IMF Aid to Europe US Housing Starts Jump, Wholesale Prices Fall Stocks Slide After Investors Focus on Europe …

Reader “G2” sent this: China revaluation would hurt U.S.: World Bank’s Lin. G2’s comments: “The denial by China regarding revaluing its currency and it’s resistance to do so makes it seem quite possible that they will revalue the renminbi soon. i.e. ‘Believe nothing until it’s officially denied’, and ‘The lady doth protest too much, methinks.’” The Mother of All Bailouts (MOAB) keeps growing: Here’s Another $23 Billion Bailout That You May Have Missed This Week. G.G. suggetsed this from The New York Post: The Next Di$a$ter–Federal mortgage insurance   Items from The Economatrix: First Gold, Now Europe Running Out of …

US bankruptcies resume upward path in first quarter. Pimco’s El-Erian Warns Inflation to Hit US, Europe. (Thanks to Brett G. for the link.) Brian B. sent us this: Euro Experiment: EU Bullied into $1 Trillion Banking Bonanza Kevin S. sent us this: Junk silver coins; Why 90% junk silver coins are worth the investment? Items from The Economatrix: Euro Collapse Fears Spark Panic Buying of Gold Deutsche Bank: Greece May Never Pay Off Debts Volcker Sees Euro “Disintegration” Risk From Greece Gold Rises to Record As Investors Seek Alternatives to Currency

Several readers recommended an excellent “must see” video that was produced by the National Inflation Association, titled: The Meltup By way of the No Money No Worries blog, we found this Four Big Banks Score Perfect 61-Day Run. Something is rotten in Denmark on Wall Street. (Thanks to Geoff in Texas for the tip.) Blood in the Streets! Bank Bailout Protesters Storm Ireland’s Parliament. (Thanks to Kathryn D. for the link.) Danny B. flagged this: 401(k)/IRA Nationalization Quietly Moves Forward Gary E. sent this: US faces one of biggest budget crunches in world – IMF Items from The Economatrix: Government …

G.G. recommended this over at Alphaville: In fiat money we do not trust. “Monetise. Monetise. Monetise. Inflation. Inflation. Inflation.” Chad S. sent this: Millions of jobs that were cut won’t likely return. Darin W. was the first of several readers to send this link: Another Gold Dispensing ATM G.G. sent this: US faces same problems as Greece, says Bank of England Also from G.G.: Roubini: “The US Economy is Unsustainable” From The Wall Street Journal, Four more banks closed on Friday, now 72 for the year. And in case you missed the news last Friday: Bank closures cost $7.3 BILLION …

The latest Friday Follies–Four More US Banks Bite the Dust: Midwest Bank & Trust Company, Elmwood Park, Illinois; Southwest Community Bank, Springfield, Missouri; New Liberty Bank, Plymouth, Michigan; Satilla Community Bank, St. Marys, Georgia. Banks seized a record 92,000 homes last month. (Thank to Brian B. for the link.) Axel Merk explains what is behind the gold and global credit market shakeup: Europe’s Bazooka Clive Maund has some interesting observations on the gold and silver markets. Reader “T556” liked this commentary by Dave DeGraw: High Frequency Financial Terrorism, Wall Street Bankster’s Maintain Death Grip on United States Items from The …

Jonathan C. sent us this: Don’t Tell Zimbabwe: Argentina Belongs to 25% Inflation Club. G.G. recommended this: Central banks are losing credibility. Also from G.G.: Report: 11.2 Million U.S. Properties with Negative Equity in First Quarter. World Health Organization Moving Ahead on Billions in Internet and Other Taxes Items from The Economatrix: US Plans Law to Prevent Banks from Betting Against Clients SEC Eyes “Circuit Breakers” to Stop Repeat of Dow Plunge The Big Short: How Wall Street Destroyed Main Street Trade Deficit Increases to $40.4 Billion in March Was The Euro Saved By a Call From Barack Obama?  

Several readers sent this news item to file under “I told you so”: Gold hits all-time high as investors seek haven Arnaud de Borchgrave: Stock Market Time Bomb? Reader Rich in Montana notes that recently “two minutes of honesty slipped out”, on the David Letterman Show: Hmmmm…. A Crack In The Dam? Bill Downey sent me his essay “Brother Can You Spare a Trillion?” Since SurvivalBlog is intentionally light on graphics (in deference to our readers that use mobile devices), I’m pointing you to the essay (with charts) which is already posted at the excellent Zero Hedge blog. The charts …

Les K. sent this: Federal Reserve opens credit line to Europe Breakfast with the FT: Nouriel Roubini. (Thanks to Mike O. for the link.) Kevin S. forwarded this: U.S. Debt Shock May Hit in 2018, Maybe as Soon as 2013: Moody’s. Fed Restarts Currency Swaps as EU Debt Crisis Flares. Read between the lines! Cui bono? Stocks Mostly Hold Gains After European Bailout SEC: Regulators Yet to Determine Cause of Plunge Items from The Economatrix: US Gold Coin Sales Surge as Investors Flee Risk Who’s on the Hook for the IMF’s Greek Bailout? Fears Intensify About Greek Crisis’ Impact on …