Category: Economics & Investing

Reader Paul W. forwarded this piece over at Real Clear Markets: Get Ready for 14 Percent Unemployment GG sent this Wall Street Journal article: Big Banks Don’t Want California’s IOUs DD sent us four articles on unemployment: Unemployed fighting for their benefits A map of weekly unemployment benefits by state and current unemployment rate by state Low income families turning to outside sources to help with necessities Retailers to lay off more workers Karen H. also sent us another raft of articles: Migrants are going to Britain, come hell or high water. “Gazing across the Channel in the direction of …

TJ Marta tells it like it is on Tech Ticker: Bailouts for Everyone, But Who’s Going to Rescue Uncle Sam? (Thanks to Trent for the link.) KAF sent this: Swiss banks drop U.S. clients due to UBS case Greg C. and GG both sent this: US lurching towards ‘debt explosion’ with long-term interest rates on course to double Items from The Economatrix: Oil Falls 4% on Economic Recovery Concerns Stocks Mixed Amid Conflicting Economic News Dollar Discomfort Thrust Onstage for Italy Summit As Retailers Cut Back, Cities Confront “Ghostboxes” US Service Industries Contract at Slowest Pace in Nine Months BofA …

Sterling Crisis Looms as UK Unraveling Points to Budget Cuts (Thanks to Heidi for the link.) Tom G. flagged this: Unwinding at AIG Prompts Pasciucco to Ponder System Failure Frank S. mentioned this grand understatement: Biden: ‘We Misread How Bad the Economy Was’ Items from The Economatrix: Another Wave of Foreclosures is Poised to Strike [That is hardly a news flash for SurvivalBlog readers!] Obama Expands Housing Rescue: Six Things to Know Joel Skousen: Cap and Trade Bad For a Sick Economy US Stocks Slide in Dow’s Worst Drop Since April on Jobs Data With Economy Down, Cities Growing (Rather …

Jasper M. sent word of the never-ending, ever-expanding Mother of All Bailouts (MOAB): Krugman: U.S. Headed for Jobless Recovery. “Nobel-Prize winning economist Paul Krugman said the nation is on course for a “prolonged jobless” economic recovery unless the Obama administration steps in with a second round of government stimulus money.” Redaer Karen H. kindly sent the following items: Weak US jobs data dashes quick recovery hopes G8 alone can’t solve world’s problems. (This changes the players) China wants diversified global monetary system Items from The Economatrix: Credit Report Warns of Russia’s Imploding Banks A Bank Run Teaches Amish About Risks …

From Mish Shedlock: Sweden Cuts Deposit Rate to NEGATIVE .25% Treasury’s Distressed Debt Plan Said to Begin With $20 Billion Morgan Stanley May Post Loss After Paying Back U.S. Bailout Funds China’s Zeng Urges More Oversight of Reserve-Currency Nations “DD” sent this: Dow off 223 as unemployment jumps; The dismal report on job losses startles traders. The S&P is now a loser on the year, and oil falls below $67.

Nick Taleb declares: ‘We’re in the Middle of a Crash‘ (Thanks to GG and A.W., the first if several readers to send that link) John W. notes: Seven more banks closed “and it’s not even Friday yet…” Ray G. sent news that unemployment at a 26-yer high: U.S. job losses spike in June, dampen recovery hopes From Cousin Bill: New York City Apartment Sales Down More Than 50% FDIC Proposes Tough Investor Guidelines For Failed Banks Items from The Economatrix: Obama Confident in Economic Recovery Despite Jobs Report Prime Mortgage Delinquencies Up 260% The Monumental Cap and Trade Outrage (video) …

Reader Wayne S. sent us a link to an interactive map with three “toggle” views that gives some very useful and interesting information for anyone looking to relocate. Wayne notes: “It’s truly amazing to see that most of the states that have done the best job managing their budgets are also the same states that infringe upon personal liberties the least…. Coincidence or not? As you have said many times on your blog, ‘vote with your feet!’” Reader HPD suggested this piece by Thorsten Polleit: Inflation: What You See and What You Don’t See From frequent content contributor GG: U.K. …

The Federal Reserve and the U.S. Treasury are cooking the books! Read between the lines in this Wall Street Journal article: Is Foreign Demand as Solid as It Looks? (Thanks to GG for the link.) Once a nation’s treasury starts “creative accounting” and debt monetization, then the handwriting is on the wall. The death spiral for the US Dollar has already begun. It just won’t be obvious to everyone for another 6 to 12 months. That is when mass currency inflation will likely begin, and once it does, barring a miracle, there will be nothing that can stop it. F.G. …

New Hampshire’s Senator Gregg slams the growth of the Federal Debt on an IBD editorial: A Debt The Founders Wouldn’t Believe. (Thanks to GG for the link.) GG also suggested this piece: Depression 2.0 by Michael S. Malone Patrick M. like this one: The Great American Bubble Machine Items from The Economatrix: Banks Reap Record $9.8 Billion Trading Derivative in First Quarter “The U.S. banking industry said it made $9.8 billion during the first quarter trading derivatives and securities as investors started returning to the markets amid signs the recession bottomed.” States Form Committee to Oppose GM Sale to US, …

From Ben M.: Bad news for GM; China ‘to block’ Hummer takeovei Currie and GG both sent us a link to a piece over at Zero Hedge: Here Comes Russian Bank Nationalzation “Russia is considering a banking bail-out that will go further than measures taken by the US, as fears grow that bad loans could paralyse the economy.” Oh, by the way, GG dubbed the Russian bailout “The MOABsky” David R. flagged this data point: Dresdner Kleinwort Securities Withdraws as Primary Fed Dealer. David’s comment: “This is important because being a primary dealer was the equivalent of having a license …

Dennis flagged this: Regulators shut 5 banks; 45 failures this year. From Dr. Housing Bubble: Alt-A and Option ARM Economic Disaster Update: California Solution? Ben M. sent this: China argues to replace US dollar Qantas cancels Dreamliner order Items from The Economatrix: Financial Crisis Considered Top “Security Threat” to US “…the most immediate fallout from the worldwide economic decline for the United States will be “allies and friends not being able to fully meet their defense and humanitarian obligations.” [Blair] also saw the prospect of possible refugee flows from the Caribbean to the United States and a questioning of American …

GG sent us this: Is inflation our next big worry? Don’t let the rally fool you: Insiders Exit Shares at the Fastest Pace in Two Years (Thanks to Karen H. for the link.) Here is a quote: “If insiders are selling into the rally, that shows they don’t expect their business to be able to support current stock- price levels,” said Joseph Keating, the chief investment officer of Raleigh, North Carolina-based RBC Bank, the unit of Royal Bank of Canada that oversees $33 billion in client assets. “They’re taking advantage of this bounce and selling into it.” Also from Karen: …