Category: Economics & Investing

The Money Market Managers Unleashed–An End to the Road to Redemption

Last week, SurvivalBlog reader Noah C. sent me a link to piece by Dan Denninger: SEC Tightens Rules for Money Funds. Noah made this comment that amplified Denninger’s observations: “Here is the most interesting part: That a Money Market Fund’s Board of Directors can now ‘inform’ the SEC (instead of request) that they are suspending fund redemptions.” I also heard from our friend Darrin in Wyoming about same topic. He wrote: “A Wall Street Journal report mentioned that the SEC voted Wednesday (1/27/10) to allow money market fund managers to freeze redemptions, in an effort to ‘make your investments more …


Economics and Investing:

Price Tags are Merely Suggestions: Haggling is Back (Thanks to Damon for the link.) Bill R. flagged this news story: Swiss warn UBS bank could collapse From Jeff D.: Bailout Cop: U.S. May Face Another Financial Crisis J.S. spotted this: Bailouts created more risk in the system From George Gordon (“GG”): UK claims it will end debt monetization this week Items from The Economatrix: Roubini: Greece is Bankrupt Greek Crisis Shows Euro is Too Big to Fail Soros Warns Gold is Now the “Ultimate Bubble” Are You Ready for the Coming Obama Retirement Trap? Truckin’ for God and Country (more …


An Insider’s View of the Real Estate Train Wreck, by David Galland, The Casey Report

The first time I spoke with real estate entrepreneur Andy Miller was in late 2007, when I asked him to serve on the faculty of a Casey Research Summit. As John Mauldin, a former faculty member himself, knows, we’re very selective with our speakers. And there was no one in the nation I wanted more than Andy to address the critical topic of real estate. My interest in Andy was due to the fact that he has been singularly successful in pretty much all aspects of the real estate market, including financing and developing large projects – such as shopping …


Economics and Investing:

Mac Slavo gets is all right in this piece posted in the SHTFPlan blog: Wealth Preservation, Investing, and Prepping in 2010. (Thanks to G.S. in the State of Jefferson for the link.) Damon sent this: U.S. Economy Grows 5.7 Percent in Fourth Quarter of 2009. JWR Adds: They’re calling it a “recovery”? That is laughable. I call it nothing more that the effect of many hundreds of billions of dollars in short term stimulus. Keep in mind that this will effectively be paid for with money borrowed from my children’s generation. The current presidential administration has spent more than $3.5 …


Economics and Investing:

Reader Johnny G. recommended an article by PIMCO’s Bill Gross titled: The Ring of Fire. Johnny’s comment: “It is interesting to see how and where SurvivalBlog precepts and the predictions of well connected, mainstream bond investors’ converge.” Some folks in England are catching on to what privately owning gold means: How to live without banks. (Thanks to Karl P. for the link.) George Gordon (“GG”) sent us this: The Fed’s Anti-Inflation Exit Strategy Will Fail; Sooner or later the pressure to lend out excess bank reserves will be unstoppable. Items from The Economatrix: Our Financial Rulers are on Another Planet …


Economics and Investing:

Banking crisis, currency fears. (Thanks to G, for the link.) Items from The Economatrix: 24 States Unemployment in the Red, 9 More Within 6 Months Is the Dow About to Dive 1,000 Points? Pakistan Collapse Could Trigger Global Depression and WWIII Walmart to Cut 11,200 Sam’s Club Jobs Bob Chapman: Are We in an Economic Depression? IRA & 401K Theft Plotted by US Government Doug Casey: Stock Market Set to Crash Home Prices Stabilize Further, But More Drops May Be in Store First-time Jobless Claims Drop Less Than Expected


Two Letters Re: Nefarious Uses of Google Earth

Mr. Rawles, I am a collector for a large bank. Before I go out to repossess (“repo”) a car, motorcycle, RV, etc. I use Google map and Google earth to try to locate my collateral. In most cities and towns Google has paid a company to take street view pictures of your house and property. More often than not, the vehicle is sitting in the driveway or in front of the house and there is a nice picture of it. Also Google earth allows me to see if it is hidden in the back 40. If you look close enough …


Economics and Investing:

From George Gordon (“GG”): Money sent home by Mexicans abroad plunged a record 15.7 percent in 2009 GG also sent us this piece by David Galland: What the Deflationists are Missing From LJ: Don’t invest in Britain: The UK economy sits ‘on a bed of nitroglycerine’, investors warned Items from The Economatrix: New Home Sales Fall 7.6% in December Stocks Fall as Investors Await Fed Decision SEC Tightens Rules for Money Funds Caterpillar 4Q Profit Tumbles; Outlook Cautious Verizon to Cut 13,000 Jobs as Business Cut Lines Signs of Housing “Recovery” Will Fade with End of Stimulus “Daunting” US Fiscal …


Economics and Investing:

Reader Jeanan asks: It this a sign of a commercial real estate collapse? Owners: $5.4Billion New York housing complexes go to creditors Robert H. recommended this piece by Paul Mladjenovic: Three Things Everyone Needs to Do with Money in 2010 Our friend Evan describes this as sort of like “doubling down” at a casino: Greece Sells 8 Billion Euros in Notes After Offering Premium GG flagged this Reuters piece: Record number of young Americans jobless Also from GG: Deficits As Far as the Eye Can See Economics Update from JWR: The last I heard, the Economatrix was still snowed in, …


Letter Re: Hyperinflation Appears Certain for the US Dollar

Jim, During many years of “hiding, prepping and watching” I’ve tried to determine what series of events may lead to TEOTWAWKI. There are many, but not obvious to most. Hurricane Katrina and Haiti are examples of either predictable events or unpredictable instantaneous events as would be a single nuclear event such as a “suitcase bomb” . Each of these has a number of things in common, but the most significant is the limited geography associated with each. The biggest difference between Hurricane Katrina and the Haitian earthquake is the lack of adjacent unaffected land. In the case of Hurricane Katrina …


Economics and Investing:

Sue C. and Chris S. were the first of a dozen readers to forward me this article link: Seven Things About The Economy Everyone Should Be Worried About Trent sent us this: Gold is “fairly expensive” could fall to $800 if Fed moves Midas fund manager says. [JWR’s Comment: I’m dubious about a big correction in the near future. I don’t expect interest rates in the US to change radically anytime soon. If anything, they are headed lower, in a desperate attempt to turn the real estate market around, and boost equities. Also note that the funds have continued to …


Economics and Investing:

GG flagged this: State jobless rates on the rise – 43 states reported rising jobless rates in December, reversing signs of improvement Kent B. sent this: Bernanke under pressure Items from The Economatrix: Dr. Gary North: Monetary Base Expansion to Ignite Inflation Not Deflation The Future of Unemployment Benefits in the US Will Obama Respond to US Voter Anger at Lack of Action on Banksters? Greece Debt Default Could Take Eurozone Down With It


Economics and Investing:

Bill R. and El Jefe Jeff E. sent us the latest Friday Follies news: Banks shut in Florida, Missouri, New Mexico, Oregon, and Washington. GG sent this Christian Science Monitor piece: China: the world’s next great economic crash Items from The Economatrix: World Bank Sees Risk of Recovery Losing Steam UK: Markets Panicked About Inflationary Spiral UK: Families Face Years of Pain, Says Bank Empty Office Spaces Soar in Downtown Seattle Bank of America Loses $5.2 Billion in Fourth Quarter of 2009 FHA Raises Fees, Tightens Loan Standards 2009 US Airline Revenue: Worst Plunge on Record


Economics and Investing:

Trent sent us this: Gold is “fairly expensive” could fall to $800 if Fed moves Midas fund manager says. [JWR’s Comment: I’m dubious about a big correction in the near future. I don’t expect interest rates in the US to change radically anytime soon. If anything, they are headed lower, in a desperate attempt to turn the real estate market around, and boost equities. Also note that the funds have continued to be big gold buyers, even after gold topped $1,000 per ounce. There will be some dramatic dips, but gold is still in a bull market. You can quote …


Economics and Investing:

Top U.K. Economist Dumas: Euro Will Collapse. (Thanks to GG for the link.) Also from GG comes some grim news from Forbes: The Global Debt Bomb: “If 2008 was the year of the subprime meltdown, 2010 will be the year entire nations start going broke.” Trent flagged this: Why Americans should care about the debt crisis in Greece Items from The Economatrix: Identifying Sure Signs of the Final Economic Plunge Banks Pull Another $1 Billion from Small Business Lending One Million Americans Give Up on Job Searches Chevron to Shrink Refining Business Ship Engine Maker Warstila to Lay Off 1,500 …