Category: Economics & Investing

Chris in West Virginia was the first of several readers that mentioned Glenn Beck’s recent explanation of inflation, interest rates, and the history of destroyed currencies. It was a basic primer for the sheeple. I just wish he had taken a couple of minutes to explain the money multiplier effect of fractional reserve banking. Ehh! Probably too complicated for many television viewers to grasp. The latest from Dr. Housing Bubble: Option ARMs Enter the Eye of the Hurricane: The $189 Billion Recast Problem Targeted Directly at the California Housing Market. Of $189 Billion in Securitized Option ARMs $109 Billion in …

The credit derivatives plot thickens: New York Fed’s Secret Choice to Pay for Swaps Hits Taxpayers. (Thanks to David V. for the link.) Russia delays sale of 50 tons of gold. (A hat tip to Trey for the link, by way of MineWeb.) GG sent this: Stimulus jobs overstated by thousands SurvivalBlog’s Editor at Large Michael Z. Williamson spotted this New York Times piece: Hard Work, No Pay. It includes this memorable quote: “I am not unemployable. I have a master’s of fine arts and spent two years in the Peace Corps.” Mike’s comment: “Er…I thought that was the definition …

Tom B. and “Word” both sent us this: Tax refugees staging escape from New York. Tom B. described as “voting with their feet.” Julius suggested an amazing Summary of US Foreclosure Activity. Wow! One in every 23 homes in Nevada is in foreclosure! An interesting piece over at Housing Storm: Contradictions and Symptoms of the Great Depression Items from The Economatrix: GM Seen Posting Sales Again Stocks Turn Lower as New Home Sales Fall New Home Sales Fall a Surprising 3.6% Treasury, GMAC in Talks for Third Round of Aid Durable Goods Orders Rise 1% in September (Whoopee! Release the …

Treasury Sales Loom, but Demand Is There. $123 Billion Worth in One Week! Not to worry, they can always make it look like they all sold to non-puppet buyers. (Thanks to loyal content contributor GG for the link.) Brad C. found this Business Week article interesting: The U.S. Metros Least Touched by Recession. Brad’s comment: Note that none of the cities in the top ten are on the East or West Coast, and that they are all in “Fly Over” country. Once again, free states lead the way. JWR Adds: Also note the correlation with my Recommended Retreat Areas page. …

As I read the occasional letters and articles on SurvivalBlog about storing/using precious metals (PMs) during a TEOTWAWKI of whatever sort, I must conclude that every single writer is absolutely correct–and yet also mostly wrong. You might ask: How can everyone be right and wrong, simultaneously? It’s because most preppers seem to anticipate and plan fairly narrowly for the use of PMs. IMHO, if you’re taking such a narrow lane down the preparation highway, you’re not thinking big enough. Any situation following a currency collapse will be complicated by varying degrees of social disorder, economic breakdown, extreme paranoia among the …

Nouriel Roubini, One on One: More Doom and Gloom (Thanks to GG for the link.) GG also sent this: Morgan Stanley analyst: Deflation, Then Inflation. (Gee, where have I heard that before?) Jen H. forwarded this: Iceland says goodbye to the Big Mac The recent profit-taking in sliver (down $1 per ounce!) has created a dip that might be a good buying opportunity. Items from The Economatrix: “Fighting The Last War”: Proposed Wall St. Reforms Won’t Stop the Next Crisis Commercial Property Kingpin Capmark Files for Bankruptcy US Stocks Overvalued By 40% Ambrose Evans-Pritchard reports: Food Will Never be So …

Barry Ritholtz sets the record straight, (by way of a link at The Automatic Earth blog): Existing Home Sales FALL in September 2009. FG sent this: Detroit house auction flops for urban wasteland Jim Rogers Interview: Long Sugar, But Getting Short Bonds (Thanks to GG for the link.) Items from The Economatrix: Derivatives Bill Amended to Let Big Banks Keep Some Contracts Secret Unemployment Getting Much Worse in 43 States The Gathering Storm in Commercial Real Estate How Uncle Sam is Killing Your Savings Jim Willie: Attack By Central Bank Lilliputians Obama Wants Banks to Lend More to Small Businesses …

Reader B.B. sent us the link to this “must hear” audio clip: Peter Schiff issues a Red Alert: “Get out of the US dollar”. Schiff warns: “This is what the Weimar Republic did, and we are going to have the same result.” Flavio liked this video clip of an an interview with Steve Forbes and Thomas E. Woods: Is Capitalism the Cause or the Solution to the Financial Crisis? This 28-minute video is well worth watching. GG suggested a piece by Carnegie Mellon University professor Allan Meltzer in the Wall Street Journal: The United States is headed toward a new …

Reader HPD mentioned this ominous news over at The Market Ticker: Possible Credit Dislocation: Be Warned From The Daily Bell: Dark pool trade limits to be reduced 95% in SEC plan Laura H. sent this: Democrats seek cover to boost debt limit Klaus sent this: China’s ‘Growth on Steroids’ Raises Danger of Renewed Slowdown [and Inflation!] Items from The Economatrix: Sept. Home Sales Rise 9.4%, Beat Forecasts Existing Home Sales Surge on Tax Credit Crude Rally Stalls, But Gasoline Prices Near Summer High UK Recession: Recovery Hopes Dashed as Economy Shrinks Again NY Delays $959 Million Payment to Pension Fund …

Reader Troy W. spotted this: Guess What: The Next Housing Bubble is Already Underway Mr. W. sent this: A List of the Next Banks to Fail The Daily Bell asks: Derivatives don’t need regulation? Jeff B. sent us this: Worldwide Diesel Glut Could Slam Oil Prices. [JWR’s comment: Wait a few weeks before you refill your retreat’s fuel tanks! The recent 18 cent jump in the price of diesel is sure to see a correction.] Items from The Economatrix: Friday Follies: Failed Bank Tally for Aught Nine Now at 101 Galleon Group to Shut Down Hedge Funds Administration Plans Big …

Regular content contributor GG sent us a link to this press release: Adam Storch Named Managing Executive of SEC’s Enforcement Division. “Unbelievable! The Securities & Exchange Commission last week appointed a 29-year old Goldman Sachs executive as the managing executive of its enforcement division. You already know about all the curious contacts Goldman’s leader Lloyd Blankfein has had with Treasury heads Hank Paulson and Tim Geithner. So I assume the SEC must also be aware of these contacts. While I have no reason to question Mr. Storch’s ethics or motives in taking this job that presumably pays a fraction of …

Charles Hugh’ Smith’s assessment: Why We’ll See Stimulus 2.0, 3.0, 4.0, 5.0 (and so on), until The Great Implosion Reader Aaron C. suggested: 20 reasons America has lost its soul and collapse is inevitable Experts warn of ‘deluge’ of insolvencies to come in the UK K.T. sent this video link: The Goldman Sachs Profitability Magic Trick. After some travel, Peter Schiff is back to videoblogging. Items from The Economatrix: 40% of Working-Age Californians Jobless Treasuries Show No Lost Appetite as Dollar Declines Hollywood Film Output Likely to Fall By One-Third Fannie, Freddie Common Shares Worthless, Says KBW Einhorn Bets on …

Reader Steven H. wrote to mention: VP Biden puts on his Captain Obvious cape and declares “This is a depression”. Of course, Joe Biden has developed quite a track record for the inability to keep his mouth shut–most notably when he revealed the “secret” nuclear blast bunker beneath the VP’s Residence. Ralph N. suggested this piece over at Volokh about how the FedGov conceals some of its debt: Treasury Inc.: The Shadow National Debt. (It is hidden under a TARP, dontcha know…) Commentary from analyst Niall Ferguson: The Dollar Is Dying a Slow Death. From the Housing Storm blog: Strategic …