Category: Economics & Investing

KAF flagged this: Venezuela nabs two for trying to ‘Twitter’ a run on banks. Consider this fair warning on a new threat: “flash mobs” that could trigger crises including bank runs, and runs on key commodities. Do you remember how Johnny Carson made one offhand remark that sparked “The Toilet Paper Crisis of 1973”? The burgeoning social networks could be used to spread a panic far and wide, whether it is justified or not. SurvivalBlog reader Tony B. sent us this: Dollar weakness reflects optimism. Tony’s comments: “How upside-down is people’s thinking when the value of the dollar falling is …

An interesting piece, over at the Dr. Housing Bubble blog: Frankenstein real estate market – $3.5 trillion in commercial real estate debt and $10.3 trillion in residential real estate debt. Items from The Economatrix: AP Analysis: Economic Stress is Easing More Slowly Investors Shake Off Slowdown in Services Growth Deficit Hysteria in Times of Depression New, Nearly Dictatorial Powers Go to Fed Economic Gloom Shrouds Spain Market Forecaster Sees Plunge to 1,000 Dow Repeats Great Depression Pattern Retailers Launch Their Own Stimulus Packages

Randy K. zeroed in on this: Wall Street Apocalypse: The World of the Doomsday Investors G.G. flagged this: Implications of a Likely Economic Downturn Items from The Economatrix: Job Creation in Private Sector Remained Weak in June So What Exactly is a Double-Dip Recession? Mortgage Rates Scream “BUY” But Who’s Listening State Pension Woes Only Worsening ISM Says Service Sector Growth Slows in June Post Office Announces 2-Cent Rate Increase. (Say, what happened to that much-touted deflation?) Pump Prices Head Down Again After Holiday Weekend

G.G. was the first of several readers to mention this article by Ambrose Evans-Pritchard: With the US trapped in depression, this really is starting to feel like 1932 Todd M. sent us this: Banks Too Big to Fail, Too Big to Bail Out: Roubini B.B. sent this: Investors Fear Rising Risk of US Regional Defaults Bernanke Created Half of 234 Years’ Worth of Money Supply. Here is a quote: “The U.S. turned 234 years old yesterday, and yet over half of the nation’s money supply was created since Helicopter Ben took over the flight controls four years ago. No wonder …

B.B. spotted this item in The New York Times: Robert Prechter’s Market Forecast Says ‘Take Cover’ Tom J.in Vermont sent this: Davidowitz: US Economy a “Complete Disaster” Thanks to Chris G. for this link: Barack Obama: The great jobs killer “Falcon” suggested this piece by Bob Chapman, who suggests that thing might get downright medieval: Struggling and Faltering to Manage Economic Recovery. Chapman writes: “As a result of this and other failures we are about to experience the worst economic collapse since 1348 [during the Great Plague.]” Items from The Economatrix: Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion Why Canada’s …

SurvivalBlog’s Poet Laureate, George Gordon (“G.G.”) sent us this one: Illinois facing ‘outright disaster’ amid budget crisis Items from The Economatrix: 40% of Florida Home Sales are Foreclosures Fed Made Taxpayers Unwitting Junk-Bond Buyers Denninger: The Clock is Running Out Gold Miners and Explorers Face Serious Supply Problems Pelosi: Unemployment Checks Fastest Way to Create Jobs Market’s Swoon Prompts Fear of the Dreaded “Death Cross” A Depressing Thought: Deflation Pending Home Sales Plunge Record 30% Layoffs Climb as Housing Slump Deepens 1.3 Million Unemployed Won’t Get Benefits Restored Stock Futures Head Lower to Open Third Quarter New Jobless Claims Rise …

Reader M.T. sent us this link: Gerald Celente: The Crash Is Underway H.L. sent this: Fears of Global Slowdown Hammer Stock Market Payback Time – Budget in the Red, Illinois Has Stopped Paying Bills (thanks to B.B. for the link.) Items from The Economatrix: Obama Says US Economy “Strengthening” Despite Weak Data US Auto Sales Seen Slowing with Recovery in Doubt City Budgets Snuffing 4th of July Fireworks Joint Chiefs Chair Reiterates Debt Is National Security Threat BP Shares Soar on Takeover Talks Greek Austerity Rage Spills Into Athens Streets One Million Protest Italy Austerity Package Crackdown! Is the Massive …

Chris G. sent us this troubling news article: House Democrats ‘Deem’ Faux $1.1 Trillion Budget ‘as Passed’ Recession cut into employment for half of working adults, study says. (Thanks to frequent content contributor B.B. for the link.) Items from The Economatrix: BofE Rate Setter Fears New UK Recession Nearly 1 in 3 First-Quarter Home Sales a Foreclosure Sold at Steep Discount Central Banks Warn of New Crisis if Exit Left Too Late China Slowdown Fears Hit Global Markets It’s Everyone for Themselves After Toronto Failure Europe’s Recovery Falters Double-Dip Recession Warning Signs are Everywhere! Batten Down the Hatches! Payrolls Drop …

KAF sent us this: National debt soars to highest level since WWII Thanks to RBS for spotting this: Oregon city turns off streetlights to save money Courtesy of reader John R.: Corruption Suspected in Airlift of Billions in Cash From Kabul. (Gee, do you think it might be suspicious?) I was doing some web wandering, and I found a fascinating history piece on AIG, and its parent company, AIC. Items from The Economatrix: Europe’s Banks Still on Life Support Roubini Says Greece Needs Orderly Debt Restructuring to Avoid “Inevitable Default” Britain “Might Not Cope with Another Bank Emergency” You Don’t …

A dark day for personal privacy in America: $600 Sale? Get Ready for Tax Form. Essentially, this makes everyone into unpaid de facto IRS agents. (Thanks to “Boosters” for the link.) Gregory S. sent this: Dollar should be replaced as international standard, U.N. report says Items from The Economatrix: Silver Posting Best Streak Since Hunt Conspiracy No Matter Which Way Economy Turns Stamp of Idiocy (The Mogambo Guru) Home Prices Rose 0.8% in April Over March Consumer Confidence Tumbles in June Oil Prices Plummet on Concerns About US Demands Gold May Reach New Highs on “Double Dip” Fears

KAF sent this: Five minutes of waiting to exhale A 17 percent plunge in Citigroup Inc. today triggered a five-minute trading pause, making the bank the second company halted by the two-week-old circuit- breaker program created to prevent market panics From reader S.M.: The Third Depression Also from S.M: US State Budget Crises Threatens Social Fabric Items from The Economatrix: Derivative Market: Alive and Kicking Despite Reforms Banks Told to Hoard Cash in Case of Crisis New UK ATMs to Restrict Money Supply 46 US States Facing Greek-Style Crisis Oil Price Rises Over Tropical Storm Concerns Unemployed Face Abuse from …

Yishai sent us this (by way of Glenn Reynolds at Instapundit): Foreign Central Banks Going for the Gold RBS tells clients to prepare for ‘monster’ money-printing by the Federal Reserve. Here is a quote: “We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy. Think the unthinkable.” (Thanks to Brian B. for the link.) S.M. sent this: Biden: We Can’t Recover all the Jobs Lost Items from The Economatrix: Derivatives Blow for Wall Street Banks Under Historic US Reforms. Translation: The …

James Wesley: I noticed about two weeks ago, that the chart movement for the price of gold is almost a carbon copy of the price of silver, one goes up, so does the other in almost the same amount. Admittedly two weeks is not a long time but is is still uncanny. The charts are almost identical, only the values are different. Check the Kitco silver chart, and then select the gold chart on the left side then back to silver. Notice the movement is almost identical? This may not mean anything, but I think the odds are too high …