Category: Economics & Investing

Reader GG suggested: Uncle Sam’s ‘F’-rated bonds GG also mentioned this piece by Mish Shedlock: FDIC to Open a Temporary East Coast Satellite Office. (Could they be expecting more bank failures or perhaps bank runs? The MOAB keeps expanding: Feds give $50 Million in aid to towns hit by auto layoffs. (Thanks to Tony Y. for the link.) Items from The Economatrix: Here Comes the Option ARM Explosion Russia Dumps US Dollar as Basic Reserve Currency Fannie and Freddie in “Critical” Condition Real Unemployment, GDP, Etc. Numbers Britain’s AAA Rating Threatened by S&P’s Stark Warning Conjuring Monster (The Mogambo Guru)

HPD found this: Mish’s Global Economic Trend Analysis: Automotive Pension Disaster; $42 Billion in Pension Promises Completely Unfunded Also from HPD comes word that another bank has bit the dust: BankUnited Bidders Said to Be Told Bank to Be Seized GG sent this bit of MOAB expansion news in the Wall Street Journal: Fed Boosts Efforts to Aid Commercial Real Estate Items from The Economatrix: Geithner: Major Banks Have Raised $48 Billion (Under the new FASB accounting rules or the old?) China Grows More Picky About Debt Local Banks Face Big Losses “Study of 940 lenders shows potential for deep …

The Economy’s Search for a “New Normal” (Thanks to Richard S. for the link.) Currie sent us this: Europe in deepest recession since War… “…The declaration was made as it emerged that Europe’s biggest economy has now suffered a worse “lost decade” than Japan and is deeper in recession than any other major economy.” Also from Currie: Japan – Major banking groups report massive losses Items from The Economatrix: From the French think tank: When The World Steps Out Of A 60-Year-Old Referential Framework As Detroit Crumbles, China Emerges as the Auto Epicenter Don’t Count On China to Rescue the …

Readers “Bigbird” and Trapper Mike both sent this: Brazil and China eye plan to axe dollar John Hussman warns: Inflation Ahead! The Destructive Implications of the Bailout – Understanding Equilibrium (Thanks to GG for the link) Frequent content contributor GG sent us this: Tax Revenues Tanking. Yikes! Look at the tax receipts for April of ’08 versus April of ’09. I suspect that the panic reaction in Congress will be raise the marginal tax rates. Thanks to DS for sending this: Stocks waver after surprise drop in housing data (This leads me to ask: Why are journalists so surprised that …

From frequent content contributor GG: China holds sway over US Dollar “The U. S. should be afraid, very afraid. China is questioning the dollar’s status as a reserve currency and, at US $1,000 an ounce, gold has become the world’s de facto currency.” – John Ing, Maison Placements in Canada Mike S. suggested a piece titled “Obsessive Housing Disorder” on Michelle Malkin’s blog, that describes the history of our dysfunctional housing market. HPD sent us a link to a piece by economic commentator Mish Shedlock: If You’re Not Petrified of Obama, You’re Not Paying Attention Items from The Economatrix: AP …

GG sent us this: CBO admits for first time chance IMF may default From The Daily Bell: Jim Rogers: Food prices will skyrocket. Raise rates soon or face inflation disaster, experts warn… Items from The Economatrix: Hot In Recession: Cheaper Wine, Chocolate, Running Shoes, Spam GM, Chrysler Dealership Cull to Cost 100,000 Jobs The Return of the Banker’s Bet $3 Trillion Later… “Could there be a better time to be a bank? Governments are endorsing high leverage and guaranteeing huge parts of the financial system, so you get to keep the profits and palm off the losses on the taxpayer.” …

Yishai was the first of several readers to mention this “must read” piece: US speeding towards financial crash   Jimmy G. sent this: Stocks still face deflationary collapse: Prechter. I agree that there will be deflation, but only in the short term. I still see Uncle Sugar’s only viable option is inflating their way out of this mess. This leads me to coin a new motto: Never underestimate the ability of governments to print money. Items from The Economatrix: Six Insurers to Get Billions in Bailout Money (JWR Notes: The MOAB won’t stop growing!) GM to Close 1,100 Dealerships Consumer …

James, My experience with [US Mint] Silver Eagles is similar to your description [of their lack of widespread recognizability]. I traded 1 silver eagle for some merchandise at $20 USD per Eagle. The person was happy. I explained to them that this was 1 oz. of silver and at the time of the trade it was equal to the amount that I told them. A few days later I went back seeking to trade again and they told me that since the face value [marked] on the coin was $1 USD that it was all the value they would exchange …

Dimitri Orlov on The New Money (A hat tip to Ruby and Vlad’s Mom) The truth escapes the lips of BHO: Obama Says U.S. Long-Term Debt Load ‘Unsustainable’ I’m praying that he does the right thing, but given the composition of Big Government/Big Taxes/Big Deficits policy wonks that were picked for his Cabinet, I have my doubts. Thanks to B.H. for this video link: “The Worst Is Yet to Come”: If You’re Not Petrified, You’re Not Paying Attention GG sent us this: China’s yuan ‘set to usurp US dollar’ as world’s reserve currency Items from The Economatrix: Even BoE Has …

Dear Sir, Regarding comments made in the letter on which form of precious metals to buy, readers should be aware that numerous Chinese fake silver dollar coins exist in today’s market. I recently became aware of these by an honest seller who identified the fakes as such, and sold me a couple for comparison purposes. They are available as common Morgan and Peace dollars as well as more numismatically valuable styles such as draped bust and trade dollars. They look surprisingly realistic and appear to have normal aging and wear consistent with what you would expect. Believe me when I …

Just as I envisioned three years ago, derivatives are now in thes spotlight: Treasury Seeks More Financial Regulations in Shadowy Markets. (Thanks to Danny S. and KAF, for the link.) From the Appenzell Daily Bell: Beginning of the end? Fed cannot account for $9 trillion KAF sent us this: David Frum: Quick fix today, crisis tomorrow in Obama’s White House Redaer GG flagged this: Strong appetite for silver boosts coin production “Mints around the world almost doubled their silver coin production in the first quarter in response to a surge of investor interest in the metal.” Items from The Economatrix: …

Dear Sir, During a discussion with a friend today, we chatted about which format of silver would be most viable as a form of a tangible asset. We discussed the recognized value of Silver American Eagle coins versus”silver rounds”, and found ourselves asking more questions than being able to provide reasonable answers. The conversation was based on my recent decision to convert US currency into silver rounds at a price of $0.90 over spot price (at the time $11.91 per ounce). This was a much lower price than the $3.59 over spot price for Silver American Eagles, so it seemed …