Category: Economics & Investing

Reader P.D. flagged this: One false move in Europe could set off global chain reaction G.G. sent this: Nouriel Roubini: “We are still in the middle of this crisis and there is more trouble ahead of us” Dave D. was the first of several readers to mention this article: New rules might not stop next financial crisis; After Senate debate, passage, many loopholes exist in regulations. At issue are those uncontrolled derivatives–finally being recognized asa threat by the mainstream media. Brian B. forwarded this CNBC piece: Global Markets Now Infected with Europe Fear On the lighter side, comes this comedy …

JWR: When I first started investing in precious metals, I was very unsure of how to do it. My first problem was to find a place that sold them. That is no mean feat in Canada. Naturally my first response was to buy paper metals. As an investment, these were cheaper and more convenient to buy and sell than taking physical possession. When I decided that it was important to take physical possession, I was faced with the problem, how do I buy an ounce of gold without getting burned by fluctuating prices. For the last five years, I have …

K.S. suggested this article by Chris Blasi: Is Your IRA or 401K a Target of Government Appropriation? British Expert: Great Depression II is Possible. (Thanks to Steve C. for the link.) Reader Brian B. sent us this: California pension fund asks state for additional $600 Million. Thanks to Sue C. for spotting this: Crisis in Europe raises ‘double-dip’ recession worries Items from The Economatrix: Chrysler Adds 1,100 Jobs At Detroit Jeep Plant Even A Trillion Can’t Save The Euro City Fears “Great Depression Mark II” German Finance Minister: Markets Out Of Control Loan Demand to Buy US Homes Sinks to …

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 …