Category: Economics & Investing

I found this linked over at TotalInvestor.com: Worst of slump yet to come, says economist; Ann Pettifor predicted a painful end to the good times. Now she says that only radical action can prevent further gloom. Her prediction was right, but it is sad to see that she has bought in to the notion that governments can “spend their way out” of the credit collapse. GG sent this: Students Borrow More Than Ever for College–25% Increase FG flagged this Wall Street Journal piece: The Coming Reset in State Government – Governor Mitch Daniel. The governor of Indiana explains why the …

Items from KAF: Gold Increases 2.3% as Greenback Drops China Pushes Silver and Gold Investment to the Masses Hong Kong Recalls Gold Reserves, Touts High-Security Vault Retailers Report Sales Decline for August More Americans than Anticipated File Jobless Claims Sugar May Drop 24% as Demand Stalls, Supply Grows Edinburgh Hedge Fund Feel Madoff Effect as Clients Get Pickier HSBC Says Switzerland Luring More Rich Foreigners as Taxes Rise And from HH: The $531 Trillion Dollar Derivatives Time Bomb The Nightmare of Contemplating Global Derivatives Fed Secretive for Good Reason Investors Rush into Gold Like 1849 Items from The Economatrix: The …

SEC’s Schapiro Calls Derivatives Data ‘Critical’ for Probe Jeff C. spotted this: IndyMac’s mortgage struggle. How does modifying a “liar loan” somehow magically make a semi-employed borrower credit worthy? From John in Ohio: Is America still depression-proof? Reader MSB mentioned: The Shell Game – How the Federal Reserve is Monetizing Debt Oldest Swiss Bank Tells Clients to Sell U.S. Assets or Leave (Thanks to DD for the link.) Exit strategy? Fed’s Plosser: U.S. rate increases could be rapid. (A tip of the hat to Brenda C. for the link.) JWR’s comment: This is starting to remind me of the policies …

This may be one of the most important pieces of economic news in many months, yet is did not receive much mainstream news coverage when the wire story was circulated yesterday: Beijing’s derivative default stance rattles market. This implications of state-owned Chinese industries being given carte blanche to nullify derivatives contracts are enormous. You’ll probably recall that I have been warning about derivatives counterparty risk for almost three years. And it was there that I specifically warned about the risk of “disappearing counterparties”. This new turn of events will likely shake the very foundations of the global derivatives markets. If …

Brendon sent this: “Zombie suppliers” haunt manufacturing sector From H.H.: Italian banks may take ham and wine as collateral Cut my pay … please! As the number of layoffs mount, more workers are ready and willing to take significant pay cuts to find employment. (Thanks to Ben M. for the link.) From DD: Small retailers feel sharper pinch; Cuts in consumer spending hit mom-and-pop shops hard Reader KAF spotted this: As Banks Repay Bailout Money, U.S. Sees a Profit U.S. Stocks Fall After China Markets Trigger Global Sell-Off Damon flagged this: Daily Commodities Fundamentals: China Takes An Overnight Plunge, Oil …

Sir, I have a question what is the metal makeup of dimes [US 10-cent coins]. I am saving the nickels [US 5-cent coins, as suggested in SurvivalBlog, since 2007]. I have a small amount of dimes and was wondering if they are worth saving? – Curtis M. JWR Replies: Stockpiling dimes would not be wise. See the base metal value data at Coinflation,com. As of Saturday, August 29th, the base metal value of a post-1964 dime is $0.01704, (less than 2 cents) but the acquisition cost fro each coin is the face value of ten cents. Meanwhile, the base metal …

Mr Rawles,s My family really enjoys and has benefited from reading your blog. Thank you for putting together such a quality reference site. One topic I have not seen discussed (even after a search of the archives) is whether or not pre-1960s foreign silver coins have any value. As a child, I received a large number of European coins from my grandfather (circa 1920s to 1930s), many of which are silver and a few appear to be bronze. While they have little value to collectors based on condition (I have kept them for sentimental reasons), I would assume that silver …

Brad H. sent this from Capitalism magazine: The Collapse of America? The Dire Message of Mr. David Walker Detroit sets record for unemployment–28.9% (Thank to Paul B. for the link.) Items from The Economatrix: Arnold Holds Great California Garage Sale To Help Economy How Goldman Sach’s Problems are Hurting You US Economy: Spending Climbed in July Due to Clunkers Program Japanese Economy Hit by “Double Nightmare” Bankers’ Excesses…At Our Collective Expense Tsunami of Broke and Desperate Americans Fed urges secrecy on banks in bailout programs (A more accurate headline would be: “Fed Warns The Truth Will Destroy The Economy”) Japan …

From Reader GG: Poll: 34% of U.S. Workers Surveyed Have Only One Week or Less of Savings to Cover Expenses if Laid Off from Work. We are a nation of debtors, not savers, and someday that’s going to bite us. Regulators Shutter Three U.S. Banks, Bringing 2009 Total to 84 Reader A.C. kindly sent all these items that he gleaned from News Max Money News: Not All Stimulus Needed Global Recovery Not the Same as Equity Recovery The Deflationists Just Do Not Get It Germany and France Not So Hard-Hit by Recession China Meltdown Could Boost the Dollar And these …

Bill T. sent us this: 2009 Nickel & Dime Minting Stoppage. “The editors of Coin World have reported that the U.S. mint, as of April 23, has ceased minting 2009 nickel and dime issues. The mint has claimed that a precipitous drop in demand from the Federal Reserve for circulating coinage was the primary reason to cease production.” I found this linked at Drudge: ‘Problem’ Banks Rise to 15-Year High on Bad Loans, FDIC Says From Karen H.: Dollar May Surpass ‘Established Lows,’ Goldman Says GG sent us this: Preparing for a major bank shakeout; Rising failures and a weak …

Got Rhodium? World faces hi-tech crunch as China eyes ban on rare metal exports. (Thanks to Jeremy M. for the link.) GG sent us this: China Tears Up America’s Credit Cards Trent H. spotted this: The Dollar Will Fall, The Only Question is “When?” From John S.: “In the Tank Forever”: U.S. Consumers, Retailers in a “Death Spiral,” Davidowitz Says 1,000 Banks to Fail in Next Two Years (Thanks to Heather H. for the link.) Items from The Economatrix: Government Agency that Insures Deposits May Need Lifeline of its Own Number of Problem Banks Surges to 416; FDIC Fund Shrinks …