Category: Economics & 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, …

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 …

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

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

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 …

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 …

Flavio sent us this: Foreclosures Up 14% in December. Flavio’s comment: “I can tell you as a real estate broker for the past seven years that things are getting worse, not better. I began to notice years ago that the media is usually about 4 – 6 months behind in reporting what myself and associates are experiencing in the now. So judging by the how quiet the phones have become, and how quiet they remain the last couple months, I would say the ‘second leg down’ has already begun. It is no longer a matter of if anymore. I give …

“The 13 Worrier” sent a link to a very interesting YouTube video of Richard Maybury and Jim Powell discussing the possibility of a double dip depression and civil unrest in the United States. Country homes get an appetite for business Is the US Economy Being Tanked by Mistake or Intent? Illinois enters a state of insolvency Items from The Economatrix: Martin Weiss: 200 Bank Failures Expected in 2010 European Markets Lifted by Corporate Deal Hopes IMF Chief: Global Recovery Stronger than Expected Recession Takes Toll on University President Pay Oil Stays Near $78 on Demand Doubts, Weaker Dollar 2010-2020 Towards …

Two more banks fail, bringing year’s tally to three UK’s Only Options are “Default, Inflation or Belt-Tightening” Items from The Economatrix: US Gas Likely to Top $3+ in Spring, Summer Capital One US Credit Card Charge Offs Hit 10% US 2009 Foreclosures Shatter Record Despite Aid Doug Casey Says Stock Market Set to Crash Dr. Gary North: Why Deflation is Not Ahead

Is the American Economy Destined to Fail? Government Bonds — the New Junk? Items from The Economatrix: Dubai World Tries to Keep Banks at Bay with Six-Month Standstill on its Debts Horizon Bank of Bellingham, Washington First Bank Failure of 2010 Four Economic Scenarios You Better Hope Won’t Materialize For Every One Job There are Six Jobless Applicants Financial Markets and Economic Crisis Outlook 2010, When Hope Turns to Fear Dr. Gary North: Deflationists Predicting Price Deflation are Not Economists, They are Journalists What Happens When the Fed Stops Quantitative Easing Howard Ruff Preparing for Rough Times By Hedging Against …

California debt rating cut as cash crunch looms. (Thanks to GG for the link.) World Health Organization Eyeing Global Tax on Banking and Internet Activity Items from The Economatrix: UK: Consumer Confidence Takes a Dive US Jobless Rates to Stay High Until 2012 Barons of Wall Street to Face US Crisis Panel Consumers Are Squeezed as Inflation Outpaces Wages Obama Mortgage Relief Program Fails to Deliver

GG flagged this: Ambrose Evans-Pritchard: A global fiasco is brewing in Japan I spotted this piece by Pat Buchanan over at WND: Is America’s financial collapse inevitable? Items from The Economatrix: Ambrose Evans-Pritchard: A Global Fiasco is Brewing In Japan Fitch Warns US Must Cut Spending to Preserve AAA Rating How Nation’s True Jobless Rate is Closer to 22% Stocks Fall on JPMorgan Results, Sentiment Survey Oil Drops on More Signs of a Struggling Consumer Platinum to Beat Gold, Says Goldman Sachs Warning of Further Economic Crises Ahead

Tim B. sent this: Dollar Crisis Looms if US Doesn’t Curb Debt And in related news, GG sent us this: US must cut spending to save AAA rating, warns Fitch GG also sent this one: The Coming Sovereign Debt Crisis, by Nouriel Roubini and Arpitha Bykere Yet another from GG: A Season Of Discontent: The only alternatives for which majorities express “a lot” of trust to help manage financial risk are close family members (64 percent) and their own efforts (74 percent) Items from The Economatrix: Stocks Rise as Optimism Builds About Earnings Retails Sales Fall Unexpectedly; Jobless Claims Up …

Reader Pamela E. suggested this article: America’s vulnerable half-speed recovery Frequent content contributors GG and Charley S. both sent this piece by Jim Kunstler: Economy has Six Months to Live Items from The Economatrix: Japan Airlines to File for Bankruptcy and Cut 15,600 Jobs UK: Work Until 80 Under Plan to Abolish Retirement Venezuela: Devaluation Sparks Chaos in Caracas MyBudget360: The Capture of Our Government by Wall Street Federal Reserve Seeks to Protect US Bailout Secrets Wall Street, Politicians Still Don’t Get It