Category: Economics & Investing

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 …

Mark Lundeen at Gold Eagle asks: How could GDP have increased 2.8% and yet electrical power consumption in the US declined by 5.04%? The latest from the Dr. Housing Bubble blog: Southern California and the MLS Myth: Why the MLS does not Provide an Accurate Picture of Housing Inventory. Shadow Inventory, Foreclosures, and Fantasy Housing Numbers. Red State Ranger sent us this: You Can Negotiate Anything. BTW, I recommend that you read my archived article on savvy bartering, for some more negotiating tactics. (The Economatrix is snowed in today, with no Internet service available.)

Eric C. sent us a link to a recent Peter Schiff interview over at The Motley Fool: A Tough Year Ahead for the U.S. Economy? From Hal N.: Greenspan backs deficit-reduction commission Items from The Economatrix: A World Crisis No Bailout Can Stop Are Your US Treasury Bonds Safe? Fastest Food Inflation–Milk Up 39% Stock Futures Signal Weaker Open as Dollar Rises Treasury Backs Out Of Plans to Sell Citi Stake Citi Suspends Foreclosures for 30 Days US Lawmakers Approve Jobs Package Moody’s Warns of “Social Unrest” as Sovereign Debt Spirals Gulf Petro-Powers to Launch Currency Mexico Whacked with Second …

Jim B. recommended this video on the Federal Reserve: The Dollar Bubble. Randy K. suggested this item: by the ever-cheery Ambrose Evans-Pritchard: Gulf petro-powers to launch currency in latest threat to dollar hegemony From J.S.: More countries at risk of default. Items from The Economatrix: World Losing Faith in Debt-Laden UK The True Danger Lurking Behind 0.00% Treasury Yields and the 1-3-6 Rule Part I The Return of Gold and Silver Eagle Rationing Airlines in Deeper Trouble than Forecast EU/IMF Revolt: Greece, Iceland, Latvia May Lead Way Bond Price Crash is Surest Bet in Town Poll Reveals Trauma of US …

I found this linked over at The Drudge Report: Democrats plan nearly $2 trillion debt limit hike Damon sent this: Cleaning up after real estate debacle Larry mentioned this BBC piece: Greece ‘faces sinking under debt’ Items from The Economatrix: Bankruptcy of US Now Certain Gold and the Last Real American Dollar Hedge Against Hyperinflation, Hard Assets Should Continue to Appreciate During 2010 Marty Weiss: Stock Market, Gold, Commodities, and Economic Forecasts for 2010 Darryl Schoon: Deflationary Economic Depression 2010, Ready or Not, Here it Comes! Foreign Demand for US Long-Term Assets Slows Greece Defies Europe as EMU Crisis Turns …

R.R. sent this: NS&I withdraws all its fixed-rate savings bonds Chris mentioned an article on the new underground economy and the avoidance of bank accounts. Thanks to Joan M. for finding this one: D-Day nears for Dubai’s $3.5 billion debt hurdle Also from Joan come this CBC (Canada) piece: Peak oil: Problems and possibilities Items from The Economatrix: World Stocks Up on $10 Billion Dubai Rescue Citigroup to Repay $20 Billion in Bailout Money Oil Near $69 as OPEC Signals No Output Cut US Recession “Not Over Until Job Rates Rise” White House Economist Sees Jobs Growth By Spring. JWR …

Tom W. liked this piece by Todd Harrison at Minyanville: What in the World Is Going On? Trent H. suggested this video clip: Globe “Overdue for a Currency Crisis”; Why Jim Rogers is Buying Dollars GG flagged this: The Coming Wave of Debt Defaults Items from The Economatrix: Sovereign Debt Defaults the Next Shoe to Drop? House Passes Massive Overhaul of Wall Street’s Regulations US Foreclosures to Reach Record 3.9 Million in 2009 North Korean Won Plunges 96% after Gov’t Reevaluation Venezuela Debt Holders Rush For Exits As Banks’ Woes Surface