Category: Economics & Investing

Reader HPD mentioned this article: 24 States Borrow Money To Pay Unemployment Benefits. HPD’s comment: “Don’t worry. The Fed sees signs of recovery… Besides, Barney Frank and Nancy Pelosi are on the scene to fix it. “ Another missive from Dr. Housing Bubble: Wall Street and Housing Neurosis: The Real Cost of California Homeownership. Extreme Foreclosures, Option ARMs, Renting Utility Costs, and Breaking the Financially Twisted Psychology. Noah C. spotted this: Heh, I Thought Dubai Was a Non-Event. Here is a quote: “Refusal to stand-still means there’s an immediate default, which means the [credit default swaps] go boom” Items from …

More Friday Follies: U.S. Bank Failures Continue Apace. “Cleveland-based AmTrust Bank, with 66 branches and roughly $8 billion in deposits, was closed by regulators Friday, as the ongoing credit crunch continued to claim victims.” Financial institutions urged to make banking accessible UN says global economy will bounce back in 2010. [Again, one for the Economic Humor section.] Items from The Economatrix: Goldman Sachs December Party Ban: No Groups of 12 Or More. So, 10 lords a leaping, nine ladies dancing is totally OK. But if you see 12 bankers — they’d better be banking! Most Americans Not Confident About Financial …

From reader J.D.: Rural America Surprisingly Prosperous, Study Finds Reader Ben M. suggested this article: How to Tell if You are Saving Enough. Items from The Economatrix: Retailers Report Surprise Drop In November Poor Report On Services Saps Stock Market Gains Services Sector Activity, Retail Sales Disappoint Weak Demand Puts Natural Gas Prices At 52-Week Low North Koreans In Shock As Cash Banned US Loses Another 169,000 Private Sector Jobs UN Economists Fear Hard Landing For Dollar Yen And Dollar Both Weaken US Service Industries Unexpectedly Contract Charting The Great World Trade Collapse As Housing Goes, So Falls The Economy …

A recent piece at the Dr. Housing Bubble blog: Shadow Inventory in 10 Prime Southern California Cities. How Pent up Inventory and Option ARMs are the new Front for the California Housing Market. K.T. sent this from Dan Denninger: FDIC Deposit fund had negative $8.2B balance in Third Quarter Jeff B. spotted this: More Evidence Gold is Being Hoarded as Comex Fulfills Gold Contracts with Paper Items from The Economatrix: Where Dubai Leads, Britain Could Soon Follow Lloyds To Suffer Further Job Losses Fears Of Credit Card Crisis As Bank Write-Offs Double Peter Schiff: Bull Market in Gold or BS? …

HPD recommended these observations from Mish Shedlock: Virginia Borrows $1.26 Billion to Pay Unemployment Benefits; Detroit Loses $400 Million on $800 Million of Bonds; Detroit’s Easy Solution I’m sure that you’ve noticed the surge in spot silver and gold prices. The last time I checked, spot silver was at $19.26, per ounce, and gold was at $1,212 per ounce! There will likely soon be some profit taking, so be ready to buy on those dips! Chad S. sent these other links: Four Reasons Hyperinflation Hasn¹t Hit the U.S. Economy Yet What’s Worse? Hyperinflation or Deep Recession? National Inflation Association’s 10 …

From frequent content contributor GG: Gold acquires new investment aura: The weight of gold coins sold by the US Mint far this year has exceeded the one million ounce mark, up 40% year-on-year Sticker Shock at Pump: Gas Prices Poised to Soar Jeff mentioned this over at Zero Hedge: Is The Fed Facing Margin Calls From European Banks? Knocking off two zeroes. (BTW, don’t gloat, the US Dollar may be next to have a 100-for-1 exchange): North Korea Revalues Currency to Curb Free Trade. (A tip of the hat to SSK for the link.) Trent spotted this: What Recovery? U.S. …

GG sent this: Far from being a safe haven, the dollar is the likely source of the next financial crisis Also from GG: We must get ready for a weak-dollar world Items from The Economatrix: UAE to Back Banks Amid Dubai Meltdown Professor Advises Underwater Mortgage Holders to Walk Away From Mortgage (Back in August, 2005, JWR warned us that these walk-aways were coming.) Furious Investors Warn Dubai it Will Never Raise Another Penny How Much Longer Can the Dollar Defy Gravity? South Africa’s Golden Age Coming to An End Senator Opposes Bernanke’s Renomination Few Signposts Mark the Road to …

Frank S. sent this: FDIC cites Loveland’s Advantage Bank; Announcement states business uses unsafe and unsound banking practices Paul D. recommended a short but excellent article by financial advisor, Jeff Clark. “In short, his advice is to learn to grow a tomato!” Items from The Economatrix: Dubai Debt Fears Threaten Credit Crunch 2, and RBS is Exposed Dubai’s Troubles Hint at Troubles Elsewhere Forget Gold and Silver, Invest In Garlic–How to Get “Stinking” Rich Most US Stocks Retreat on Fears Dubai Will Default on Debt Dr. Gary North: Fiat Currency Money Printing Leading To Decentralization and Operational Secession Investors Buy …

Damon sent this: U.S. dollar collapse could devastate economy: book Chad S. spotted an article about indigent families now having to bury dead family members themselves. C.K. in Texas mentioned that there was a PBS mini-series this past summer (available online) about how money gained its importance over time. It was called The Ascent of Money and the fourth episode would be of interest to many SurvivalBlog readers. C.K.’s description: “It talks about the hyperinflation that occurred in Argentina years ago (so bad that ranchers wouldn’t bring their cattle to market) and also about the fragile economics of Chinese and …

Chad S. sent this: Get ready for 65 percent tax rates. Also from Chad: “You could be running out of time to buy gold” The folks at The Daily Bell linked to this piece over at Seeking Alpha: High Gold Prices: It’s the Oil, Stupid Items from The Economatrix: Signs of Life in Stores as Holiday Shopping Begins Food Banks Nationwide Report More First-Time Users Russia to Invest in Canadian Dollars Recession “Is Even Worse Than Feared” Dubai Bankruptcy is a Taste of Things to Come. Global intervention has only bought us time Dubai is a Harbinger of Things to …

Bobbi-Sue mentioned an extensive Niall Ferguson interview. Bobbi-Sue’s comment: “Ferguson is still bearish based on historical norms and a few of his other popular ideas such as the China/America dance.” From Damon S.: Dubai Debt Woes Turn Ugly After It Seeks Standstill Deal Items from The Economatrix: FDIC Rescue Fund Slides into the Red Washington Post Closing All US Bureaus Outside of DC Britain Has Run Out of Money Cold Turkey Thanksgiving 2009 The Day The Dollar Died (Part 4–Arrogance of the Gods)

A news item flagged by GG: IMF: Banks Still Hiding Half of Their Actual Losses; $1.5 trillion in bad debt on bank balance sheets, and losses on these bad loans still threaten the solvency of many institutions. From El Jefe Jeff E.: One in Four Borrowers Is Underwater Also from Jeff E.: FDIC Reports 552 ‘Problem Banks’ As of Sept. 30, 2009 Items from The Economatrix: IMF Warns Second Bailout Would Threaten Democracy Wave of Debt Payments Facing US Cities Wall Street Pummels US Cities Over Billions in Fees on Investments Gone Bad More Bankruptcy Cases Filed Rates on 30-Year …

GG sent this: A Mad Rush as Gold Bugs Get the Boot FAF sent this from Fox News: Economic Growth Revised Down in 3rd Quarter From El Jefe Jeff E.: Stocks, Oil Drop After U.S. Consumer Spending Trails Forecasts Items from The Economatrix: Crude Prices Sink Down Near $76 Reports on Consumer Confidence, GDP Tug at Stocks Banks Earn $2.8 Billion in 3Q, Insurance in Red Reports on GDP and Consumers Signal Modest Rebound Fed Under Fire as Public Anger Mounts Goldman Sachs and US Demise Wall Street Plays Hardball Restaurants Brace for a Sour Season as Consumers Lose Appetite …