Category: Economics & Investing

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: …

Greg C. sent us this: Fading of the Dollar’s Dominance; Other Nations See Opening to Boost Their Currencies Also from Greg: ECB Injects $662 Billion into Banking System Reader A.C. contributed this: Buffett: U.S. Economy in Shambles Spotted by JHB: Unemployment: The Hardest-Hit States Items from The Economatrix: Fed Says “Recession” Easing, Inflation Tame. [JWR Adds: My Barbra Streisand Meter is pegging.] AAA: Weak Economy Will Zap Holiday Trips UK: Pensioners Kidnap Financial Adviser and Torture Him Ron Paul: Obama’s “Goal” Is Economic Collapse As China Hoards, Concern Grows About Recovery Longshoremen Running Idle at Newport News (Virginia) Port “There’s …

GG spotted this article: The Real Crisis Is Food: Beginning of the Bull for Agriculture Udo sent this: U.S. Home Prices Drop [Another] 6.8 Percent in April as Foreclosures Rise. JWR’s Comment: We are nowhere near the bottom! I don’t expect that for another four to seven years. With the exception of retreat properties, it is best to stay on the sidelines and rent, while you are waiting for the market to bottom. Then you can buy for perhaps 25 cents on the dollar. Reader HPD liked this piece by Mish Shedlock: US Approves IMF Gold Sales; What Does It …

From The Daily Bell: David Morgan explains why silver remains the ‘people’s metal’ and why it may be a better investment than gold Karen H. sent this: Numbers on Welfare See Sharp Increase DD sent a piece about British ex-pats: Global downturn dashes retirees’ dreams SurvivalBlog’s Editor at Large Michael Z. Williamson sent a link to this lengthy piece: Still Researching Corruption at The Treasury Items from The Economatrix: US Says Bonds Seized In Italy Are “Clearly Fake” Bearer Bonds Saga: Resolution? Employers Are Undermining The Economic Stimulus Plan “Reports are starting to appear suggesting that laid-off or underemployed Americans, …

Harry Schultz warns Bob Chapman’s newsletter readers of a possible upcoming “bank holiday.” From KAF: A Fake Financial Fix Glenn M. recommended this article and the accompanying video clip: Thirty Years of Inflation Coming, But “Deflation Scare” Not Over Yet, Cycle Maven Says Karen H. sent this: Derivatives Get Second Look From U.S. Congress That Didn’t Act. I warned SurvivalBlog readers almost four years ago about the threat posed by derivatives.(Please take tee time to re-read that article.) The frightening thing is that we have not yet seen the derivatives bubble fully implode–just one sector.. Also from Karen: States Turning …