Category: Economics & Investing

From GG: California Teachers Pension Fund $42.6 Billion Short Truckman sent this; Commercial Real Estate’s Coming $1.4 Trillion Crisis From JDD: Report: 1 in 5 U.S. homeowners underwater Items from The Economatrix: Inflation: Ignoring Doesn’t Make It Go Away (The Mogambo Guru) Chapter XVI: When Shopping Is A Pleasure (The latest in The Day The Dollar Died series) Globalization is Killing the Globe: Return to Local Economies FEAR Davos 2010, Into the Bomb Shelter Why Silver Price Will Boom to $50/Oz. Bernanke Says Discount Rate May Rise “Before Long” Trade Gap Unexpectedly Rises on Imports How A New Jobless Era …

Hugh D. zeroed in on this Telegraph article: China orders retreat from risky assets. The article begins: “China has ordered managers of its vast currency reserves to withdraw from risky dollar assets and retreat to core debt guaranteed by the US government, a clear sign that Beijing is battening down the hatches for fresh trouble on global markets.” Randy F. sent this article: Monopoly “Money “ –which notes that it is currently illegal to melt pennies or nickels, and the plans for further debasement of our currency. Reader JTH found this: Bailout panel cites commercial real estate danger UK central …

From GG: How Goldman Sachs Helped Greece to Mask its True Debt Tom W. wrote to mention that he liked a Real Clear Politics piece titled Big Government’s Big Shortfall. Items from The Economatrix: Stocks Up After EU Pledges Support for Greece Moral Support, But No Money, EU Says to Greece Oil Up for Fourth Day on Strong International Demand Outlook The Fed’s “Exit Plan” is Just Another Secret Gift to Wall Street Jason Kelly Reviews the US and European Economies Banking and Housing Payments Devoured Middle Class Income Stocks Fall as Bernanke Points to End of Stimulus Trade Deficit …

A link sent by SurvivalBlog’s Poet Laureate George Gordon (“GG”): Why Sovereign Debt Pain Has Only Just Started Also from GG come this big red flag article: Greece ‘Dress Rehearsal’ for U.S. and U.K., Deutsche Bank Says Sent by Trent: Britain faces ‘oil crunch’ within five years, Richard Branson warns Forget The Mortgage, I’m Paying My Credit Card First! (Thanks to Coyote in northern Michigan, for the link.) Items from The Economatrix: Greece’s Financial Crisis Puts Future of Euro in Question Super-wealthy Investors Move Billions Out of Greece World Bankers Meet in Sydney as Recovery Fears Intensify Bank Failures to …

CMBS Loan Liquidations Hit Record $585M in December. (A hat tip to Flavio for the linkio.) Jeff P. suggested this Business Insider piece by Michael Snyder: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover And from Jeff B., news of further debasement of US coinage: Obama’s Proposed 2011 Budget Allows Coin Composition Changes. Do you have your stash of nickels yet? Items from The Economatrix: US Mortgage Sector Braced for End of Fed Help Initial Jobless Claims Rise Unexpectedly; Stock Futures Down, Dollar Up Portugal Warned Near Political Crisis Over Debt EU Meets …

Mr. Rawles, I took your advice of socking away nickels to heart. I wanted to start off with an ammo can for each member of my family. I figured why not go to the local bank where my wife has banked since 1993? I went in, filled out the withdrawal slip for $178 (one ammo can) and requested the payout in nickels. The teller then said that if I withdrew $200 instead he can give me two boxes that came from the Fed. They gave me the nickels but told me that they really only give rolled coins to their …

Reader Dan D. recommended this piece by Simon Johnson: Europe Risks Another Global Depression Commentary from Bill Pesek: Biggest Bubble in History Is Growing Every Day. He’s anticipating big time currency inflation in east Asia. (Thanks to Auby for the link.) Mike H. recommend this essay by Doug McIntosh, posted over at Steve Quayle’s site: When the Gimmicks Fail Items from The Economatrix: Shell Downplays Prospect of Quick Recovery in Oil Demand Despite Profits Rebound The Bernanke Reappointment: Be Afraid, Be Very Afraid Planned Layoffs Rise for First Time Since July Economic Report The Devaluation and Fight for Survival of …

SurvivalBlog’s Editor At Large Michael Z. Williamson flagged this:mentioned this at Market Ticker: Derivative Fraud? Where Are OUR Cops? GG flagged this: What Every American Should Know About the National Debt Also from GG: Evercore CEO Altman: Obama’s Deficit Will Cause An International Currency Crisis In The Next Two Years Tim R. was the first of several readers to send this: It is Now Mathematically Impossible to Pay Off the U.S. National Debt Items from The Economatrix: Mortgage Rates Edge Up Slightly Moody’s Warns US of Credit Rating Fears Sovereign Debt Fears Rattle Investors Greek Debt Woes Spread to Portugal, …

There has been a veritable torrent of bad economic news in the past few days. Here is just a sampling… Ponzi Scheme: The Federal Reserve Bought Approximately 80 Percent Of U.S. Treasury Securities Issued In 2009. (Thanks to Duane for the link.) George Gordon (“GG”) sent this: 20 Reasons Global Debt Time Bomb Explodes Soon Also from GG: Sprott: Gold to gain 30% in 2010, higher interest rates to hurt US economy and another from GG: Fears of ‘Lehman-style’ tsunami as crisis hits Spain and Portugal Chad S. forwarded this: North Korea’s economic moves bring new misery John G. liked …

From GG: Revelations of hidden Greek debt “last straw”. And here is a related news story: EU toughens demands on Greece Flavio sent this linkio: It’s Official: California Housing Production Reached New Low in 2009. Down 83% from the 2004 peak! Pioneering blogger Hugh Hewitt says: We Are Headed For A Fiscal Stroke. (A tip of the hat to Damon for the link.) Chad S. flagged this: U.S. May Lose 824,000 Jobs as Employment Data Revised Items from The Economatrix: Note from JWR: Cheryl (aka The Economatrix) wrote me to mention that there is up to two feet of fresh …

George Gordon (“GG”) sent this news item: Largest-ever federal payroll to hit 2.15 million Also from GG comes this link to a Seeking Alpha piece: U.S. Economy: Don’t Worry, Prosperity Is Just Around the Corner Yet another from GG: Rising FHA default rate foreshadows a crush of foreclosures Reader JDD spotted this over at The Daily Beast: The Dollar’s Scary Decline Also from JDD: Obama’s Budget Has One Small, Missing Piece…. For $6.3 Trillion Dollars Items from The Economatrix: US January Auto Sales Rise Unemployment Rises in Most Metro Areas Roubini Sees “Very Dismal and Poor” US Growth Ahead Bernanke …

I warned you, folks! Coin Composition Change Included in Obama’s 2011 Budget. Have you socked away your nickels yet? Do so before they start making them out of stainless steel! Gresham’s Law is still in force. (Thanks to CRD for the link.) Matt B. mentioned that the Geography of Recession interactive map has been updated. This is looking grim! The Other Jim R. forwarded us a link to this Zero Hedge piece: Brace Yourself for the Coming Gold Shortage GG sent this: White House to paint grim fiscal picture Michael Z. Williamson (SurvivalBlog’s Editor At Large) flagged this: Obama’s 2011 …

George Gordon (“GG”) sent this: In Coke We Trust; Investors now view a default by the U.S. Treasury as more likely than a default by the Coca-Cola Company. Sue C. sent us this: It only gets worse this year for commercial real estate Kevin K. flagged this: Kalashnikov Gun Factory Offers Food in Place of Salaries. JWR’s Comment: If they don’t have cash to pay workers, then they probably don’t have cash to pay the food suppliers, either. I suspect that some barter is going on. (Which would make me very happy, if I were a local farmer.) Items from …