Category: Economics & Investing

Even More MOAB Money: Bankers Get $4 Trillion Gift From Barney Frank The Economist: A turbulent year in the currency markets is coming. (A hat tip to frequent content contributor G.G.) Bill R. sent us this from The Wall Street Journal: Banks Risk Storms in Safe Havens From Reader F.G.: California gears up to charge “Use Tax” on items purchased out of state Items from The Economatrix: Stocks Edge Higher as Jobless Claims Fall Fannie, Freddie Proving Too Big to Shrink North Korea Bans Foreign Currencies in Market Clampdown $36 Charge for Not Using Your Credit Card Goldman Sachs Denies …

Morrie recommended a web page that he found by way of Dan Denninger’s site: Move Your Money. SJR spotted this: Government moves closer on fresh aid to GMAC El Jefe Jeff E. sent this: Economists React: Prices Have Further to Fall. Also from Jeff come this in The Wall Street Journal: State, Local Tax Revenues Decline 7% Items from The Economatrix: Government Gives GMAC $3.8 Billion in New Aid, Boosts Stake Chinese Firm Says it Won’t Pay Goldman on Derivatives Losses Banks Bundled Bad Debt, Bet Against It, and Won World Stock Market Rally Seizes Up Consumer Confidence Up, House …

The Mother of All Bailouts (MOAB) continues to grow: U.S. may prop up housing further via Fannie, Freddie; Unlimited support may presage more aggressive action in mortgage markets. (A tip of the hat to Randy F. for the link.) Adjusted for Inflation Dow’s Gains are Puny. (Thanks to James B. in Colorado for the link.) Items from The Economatrix: Retailers Stores Thinly Stocked, Profits Won’t Be Stocks Edge Higher As Shoppers Step Up Spending Holiday Sales Rose Estimated 3.6% “Reasonably High Chance” Economy Will Contract in 2010 Cash-Strapped US Running Out of Unemployment Money Home Equity Lines Of Credit Have …

Charley S. recommended this R. Taggart Murphy article over at Japan Focus: In the Eye of the Storm: Updating the Economics of Global Turbulence Damon sent this: Burlington Northern’s Tepid Outlook is a Warning Several more readers have suggested that I link to this 30 minute YouTube video: The Dollar Bubble, which was mentioned once before in SurvivalBlog. It features clips of Peter Schiff, Ron Paul, Dr. Marc Faber, Gerald Celente, and Jim Rogers. Items from The Economatrix: Schumer Urges Wall Street Banks to “Get That Money Out There” US Stocks Rise, S&P 500 Reaches 15-Month High on Commodities Berkshire …

The Other Jim R. mentioned a piece in the SHTFPlan blog: Hyperinflationary Depression – No Way of Avoiding Financial Armageddon Markus suggested this piece over at 321 Gold: An Introspective Look at the Future of America Craig Harris. A recent post from the Dr. Housing Bubble blog: Real Homes of Genius: Culver City Housing Bubble. Housing Shadow Inventory in Action. Countrywide Bank Owned home versus Duplex on Same Block. Foreclosure Holiday. Items from The Economatrix: Geithner: Tight Lending Threatens US Recovery Global Food Crisis 2010 Means Financial Armageddon Bob Chapman: The Credit Crisis is Not Over Global Markets Face Rising …

The Other Jim R. was the first of several readers to alert us to this article: We’re Screwed! ShadowStats.com founder John Williams explains the risk of hyperinflation. Worst-case scenario? Rioting in the streets and devolution to a bartering system. [Gee, what blog has Mr. Williams been reading?] YRC Has Until Yearend to Corral Bondholders, Avert Bankruptcy. Items from The Economatrix: Retailers Slash Prices After Christmas Shoppers Return to Malls, Looking for Deals Stores Hope Gift Cards Will Give Post-Christmas Lift Credit Crunch: Home Equity Lending Evaporates China Closer to Becoming World’s Second Largest Economy US Removes Caps on Fannie, Freddie …

Bailout nation continues: Schwarzenegger to seek federal bailout of California on threat of deep cuts. (Thanks to GG for the link.) Also from GG: Austria nationalises Hypo in ECB-backed rescue deal because of “systemic importance in the former Yugoslavia”. Items from The Economatrix: Fitch: Britain and France Risk Losing AAA Rating Thrifty Families Accused of Prolonging the Recession UK: Families Hit By Worst Wages Crash in 50 Years By way of Steve Quayle‘s web site: National Irish Bank Stops Handling Cash Lack of Bank Liquidity Threatens Commercial Real Estate Market States’ Jobless Funds Going “Absolutely Broke” Economic Data Dump For …

Treasury removes cap for Fannie and Freddie. (Thanks to Jeff R. for the link.) GG sent this piece in The New York Post by fellow near future novelist Ralph Peters: 2010: The year of bankrupt governments. (And coincidentally, Ralph and I have the same literary agent, Robert Gottlieb.) Items from The Economatrix: Shoppers Give Stores Last-Minute Sales Surge Jobless Claims, Goods Orders Signal Modest Rebound Stocks End Shortened Session at New 2009 Highs Mortgage Rates Inch Above 5% Congress Raises Debt Ceiling to $12.4 Trillion Ford Sells Volvo to China Geithner: Job Growth Should Resume By Springtime Britain Joins Italy …

Arrow Trucking suspends operations leaves hundreds of drivers stranded. (Our thanks to HPD for the link.) El Jefe Jeff E. spotted this: Consumer Spending in U.S. Climbs Less Than Forecast From Chris J.: Economy revised downward (AGAIN!). Chris’s comment: “It looks like the men in the know have yet again revised the third quarter downward, from 3.5% to 2.8% to 2.2%. Of course this CNN article doesn’t mention that the cash-for-clunkers and home buyer’s credits are estimated to be worth 2.0 to 2.5 percentage points. It takes faith though; the “experts” who didn’t get it right last time assure us …

Jeff D. mentioned: Employment funds going ‘absolutely broke’; 40 state programs to be emptied by the jobless tsunami within two years GG spotted this: The Inflation Bomb Hiding on The Fed’s Balance Sheet Tom B. spotted an article in The Shanghai Daily: Harder to buy US Treasuries. Here is a brief quote: “…it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.” Items from The Economatrix: Gasoline Prices Flatten Below $2.60. This may be a good opportunity to refill your storage tanks with fairly reasonably priced …

From Vanity Fair, on Iceland’s financial rise and fall: Wall Street on the Tundra (HT: Sharon) Flagler County, Florida, had the state’s highest jobless rate: 16.8 percent (HT: F.G.) Items from The Economatrix: Federal Salaries Targeted As Private Sector Pay Stagnates Skies Darken For Bernanke Nomination Luxury Retailers Look To State Christmas Comeback What People Are Splurging On Tech Stocks Pull Market Out Of 3-Day Slide 7 US Banks Seized, 2009 Total Now 140 66% Americans Not Confident Their Children’s Lives Will Be Better Greenspan: Threat To U.S. Fiscal Stability Larger Than Ever

John S. in Virginia suggested a Forbes article on China’s Economic Bubble. Items from The Economatrix: Buyers Spurn Gold for Silver Greece Credit Rating Rated Junk Levels UK: Confidence Falls on Fears of “Double-Dip” Recession How Much Imaginary Gold Has Been Sold? 2010 Food Crisis for Dummies Full Circle of Government Debt Default

Reader M.S. spotted this editorial by James Quinn: Brave New World 2010. This editorial by Frank Seuss was linked over at The Daily Bell: The Life-Long Challenge of Differentiating Between Truth, Paradigms, Truisms and Plain Lies RLG sent this video clip: Ryedale Coin Penny Sorter. Keep in mind how much profit from how many hundreds of thousands of pennies it would take to recoup the cost of buying a sorting machine. To my mind, this is a hobby business strictly for retirees with strong backs! Bill from Ohio sent this: Six Banks shut down Friday – 140 total this year …