Category: Economics & Investing

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, …

Justin N. sent us a link to a Japan Times article: Consequences of U.S. debt. From frequent contributor KAF: Death of the ‘McMansion’: Era of Huge Homes Is Over S.M. sent a recent piece from NY Times Business Day: In Striking Shift, Small Investors Flee Stock Market Items from The Economatrix: Stocks Fluctuate on M&A Activity, Economic Worries Broke US Cities Sell Parking, Airports, Zoos Gerald Celente: We Are Heading For The GREATEST Depression Rense And Celente Prepare For The Worst Gloomy US Industrial Data Rattles World Markets A Permanent Housing Collapse? Bankruptcy Filings Soar in US and California Central …

The fallacy of cheap home prices and the two income trap – dual income households underscore massive housing inflation. Nationwide home prices overvalued by 25 percent. Reader Judy G. sent this: “My family likes the Rice-a-Roni mixes. I would get them at Kroger often for $1.00 a box. Suddenly the price went to $1.47 a box. I switched to Wal-Mart (I hate to shop there) and found them for $1.12 a box. After many weeks, the Kroger price went to the” everyday low price” of $1.25. I am working on a substitute. I make a veggie cornbread for my parrots …

K.T. sent this: The New Auto IRA Is Just Highway Robbery. Here it comes, folks. This is just first step in nationalizing IRAs and 401(k)s! Brett G. suggested this item: Many Homeowners Expect Home Values to Fall Further. Items from The Economatrix: Spike In Layoffs Feed Fear of Faltering Recovery California Home Sales Drop by 22% in July It’s Going to Get Worse…A Whole Lot Worse UK Sinks Deeper Into the Red Entering A Death Spiral? Tensions Rise In Greece as Austerity Measures Backfire Death and Joblessness Regulators Shut Down Big Chicago ShoreBank, 7 Others And So it Begins: Gold …