Category: Economics & Investing

Morris S. suggested: Six investing rules for a worst-case scenario Mark Frey Calls It: Europe Enters Full Scale Financial Panic David Rosenberg: Euro Breakdown Could Drive Gold to $3,000. Rosenberg’s target for the Dow: 4,800. (A hat tip to Flavio, for the linkio.) |Courtesy of SurvivalBlog’s Poet Laureate, George Gordon (“G.G.”): U.S. Debt Shock May Hit In 2018, Maybe as Soon as 2013: Moody’s Also from G.G.: We Are Out of Money; American governance won’t begin to inch forward until the political class faces basic facts. Items from The Economatrix: UK Budget Deficit to Surpass Greece Productivity Growth Ebbs, Hiring …

G.G. suggested: The Subprime Rhyme with U.S. Debt Debacle, by Michael Pento Also from G.G.: Greek debt crisis offers preview of what awaits U.S. RBS suggested this article: Drowning in home debt Reader V.A.F. sent this: Freddie Mac Posts First Quarter Loss of $6.7 Billion, Asks Treasury for $10.6 Billion (Our tax dollars, funding our NINJA neighbors’ McMansion fanatsies.) Items from The Economatrix: Britain Must Cut Deficit Fast, Europe Warns America at the Crossroads and the War on Gold S&P to Gold Ratio: On Verge of 1.00 Breakdown Auto Industry on Road to Recovery But Pace Slows Federal Government Outpaces …

GG sent this: Inflation Worries Permeate U.S. Also from G.G.: Nouriel Roubini: US faces inflation or default Valerie F. sent us a link to a great Fox News interview with Ron Paul about the Greece-soon-to-be-USA problems. Chad S. sent this: Trader’s typo may have triggered record Dow plunge The latest Friday Follies: Bank closures in Minnesota and Florida. Items from The Economatrix: Moody’s Warning Portugal of Possible Debt Downgrade Angela Merkel: EU Future At Stake in Greece Crisis Chinese Markets Slide as Jitters Take Hold Hundreds Seek to Fill Positions After Illegals Fired UK Mortgage Lending Dives 83% Three Die …

Stocks were down yesterday, but precious metals were up. Its a good thing that you are a SurvivalBlog reader, and wisely got out of stocks and into silver and gold, long ago. G.G. sent this: Long-term unemployment soaring Also from G.G.: John Williams: A Hyper-Inflationary Great Depression Is Coming In a recent issue of his excellent (and free) Outside The Box e-newsletter, John Mauldin had these comments: “It now looks like almost 30% of the Greek financing will come from the IMF, rather than just a small portion. And since 40% of the IMF is funded by US taxpayers, and …

CMBS Delinquencies Hit Fresh Record, Now at $51 Billion, 268% Increase. (Thanks to G.G. for the link.) Also from G.G.: Still No Credit Where It’s Due (Commercial and industrial loans have contracted 19% in the past 12 months. Consumer credit is down 6% in the year to February, when it stood at the same level as June 2007.) RBS sent us this: Idle rail cars generate cash for Boise Also from RBS comes this article in Der Spiegel: The Mother of All Bubbles Could Push Euro Zone into Bankruptcy. Thanks to Steve S. for forwarding this: China May ‘Crash’ in …

Nic suggested a piece over at Seeking Alpha: Richard Russell’s in Cash and Gold: ‘No Time to Be Cute’ Courtesy of Matt R. comes this article link: Warren Buffett Worries About High Risks of ‘Significant Inflation’ Around Globe Brett G. sent this indicator of a bond market crash in the near future: Dow-Jones: I Told You So 14 Months Ago Items from The Economatrix: Japan Public Debt of 200% of GDP Makes Crisis Inevitable Where Has All That Lost Wealth Gone? Bernanke Admits Printing $1.3 Trillion Out of Thin Air Europe’s Web of Debt What Will They Tax Next? Stocks …

El Jefe Jeff E. sent this frightening news on price inflation: US inflation up 2% in March. I’ve already warned you: As the Treasury monetizes its way out of the recession, be ready for mass inflation, folks! Jon in Wyoming sent this: Euro Sales Extend as Morgan Stanley Mulls EU Breakup Also from Jon: Roubini Says Rising Sovereign Debt Leads to Defaults Yishai suggested this piece by Ronald Bailey of Reason magazine: Peak Everything?; Forget peak oil. What about peak lithium, peak neodymium, and peak phosphorus? Items from The Economatrix: Analysis from Dan Denninger: Bernanke is Getting Scared Goldman’s Shares …

Note the fait accompli tone of this NPR article that of course inevitably leads to the conclusion that there will be either massive tax increases, or mass inflation in the near future: The Federal Debt: How To Lose A Trillion Dollars. (Thanks to Gedan for the link.) Frequent content contributor Chad S. flagged this important article over at Zero Hedge: Treasury Redeems A Gargantuan $643 Billion in Treasuries in April. Want a good belly laugh? If so, then read this item from Chad S.: Corporations ride a consumer spending spree to better earnings as recovery gains steam. Here is Chad’s …

Chad S. sent this: Credit-rating agencies under fire in Europe crisis.Chad’s comment: “I wondered what the real problem was–is it that credit-rating agencies are skewing the truth or is it that governments are just trying to soft-pedal how bad their self-inflicted financial mess is.” Riots, Violence Break Out at Greek May Day Rallies. (A hat tip to KAF , for the link.) Eric S. sent this: After the IMF Bails Out Europe, the U.S. May Have to Bail Out the IMF Items from The Economatrix: Greek Debt Crisis Rattles Asian Markets, Sends Oil Price Tumbling Spain Downgrade Sparks European Sell-off; …

Steve H. recommended this article: Era of paper assets may be winding down Reader S.K.F. recommended: While the Greece Fire Spreads, a Trade War Begins A.C.L. mentioned some frightening charts published by The Chicago Tribune: A Tsunami of Red Ink. JWR Adds: I can remember back in 1977, writing fervent letters to my congressman, urging him to help keep the National Debt under $1 Trillion. Now the debt is 20 times that! BTW, that congressman who ignored my letters was Fortney “Pete” Stark, (Democrat) of California. He is still is Washington D.C. (a 37- year incumbent!) And Stark is still …

Roubini says Euro’s days may be numbered. (Thanks to GG for the link.) Chad S. spotted this: Canada considers eliminating the penny. Kevin sent us this: States Bristle as Investors Make Wagers on Defaults Also from Kevin: In ‘Chair City,’ Budget Cuts are ‘Amputating’ Municipal Services Items from The Economatrix: Meat Prices May Spike this Summer (Stock up your chest freezer now, and lay in a supply of canned meat! Since grain prices are remaining high, meat will probably be very expensive for the next few years. It is a good thing that we mainly eat elk and venison, here …

GG sent this: ECB may have to turn to ‘nuclear option’ to prevent Southern European debt collapse Brett G. spotted this article over at NewsMax: U.S. Debt to Hit $20 Trillion, Financial Times Warns Greek borrowing costs hit high as Germany fuels uncertainty over aid. (Thanks to R.I.P. for the link.) RBS sent this piece about foreclosed real estate: Flipping houses is back in South Los Angeles Europe debt crisis spreads to Portugal (Standard & Poors downgraded Greece and Portugal sovereign debt paper to “junk” status today.) Items from The Economatrix: Stocks Pull Back on Europe’s Deepening Debt Woes Europe …

“Hambone” sent us a link to a must-read piece over at Seeking Alpha: Current U.S. Dollar Currency Controls Blaine sent an interesting article as follow-up to my link from Saturday: GM is using our tax dollars to repay our tax dollars to get more of our tax dollars at a reduced interest rate. A nice deal if you can get it. H.T. sent this: Commercial Real Estate Losses and the Risk to Financial Stability. This U.S. Senate report begins: “The Congressional Oversight Panel’s February oversight report, “Commercial Real Estate Losses and the Risk to Financial Stability,” expresses concern that a …