Category: Economics & Investing

Eric S. spotted this: Five Firms Hold 80% of Derivatives Risk, Fitch Report Finds A reader from South Carolina sent this: The weak dollar and the economy Items from The Economatrix: Michael Panzner: Wall Street’s Gains Equal Main Street’s Losses? “In sum, while a growing number of investors seem to believe that Main Street is on the mend, many of corporate America’s senior executives — who are normally not prone towards pessimistic outlooks — are maintaining that they see no real evidence of a revival where it counts — on the ground. In fact, amid an almost single-minded focus on …

From GG: Regional banks on the brink Also from GG: UK GDP continues large declines Another Seven US Bank Closures Announced on Friday: Regulators Shut Six Georgia Banks, One in New York State Items from The Economatrix: Fiction Upon Fiction (The Mogambo Guru) Experts Float Debt Bubble Fears Hollywood Celebs Filing for Bankruptcy E-Trade Reports Quarterly Net Loss of $143 Million Discount-brokerage company has lost 94% of its market value in past two years Asian Stocks Rise [Friday] on US Home Sales, South Korean Growth Consumer Sentiment Falls on Jobs Concerns Stock Trading Slowdown Steepest in Two Decades; Rally May …

GG recommend this three-part YouTube video: Hyperinflation Nation Greg C. spotted this item from New Zealand: $190,000 withdrawn in $20 bills; Irate bank customer hits back From GG: Poll: Americans lacking in emergency funds Items from The Economatrix: Retail Industry Braces for Shopping Center Collapse California Hotels Flood the Market Biden, Oh Biden! (The Mogambo Guru) Toyota Said to Plan to Shut California Car Plant on First Ever Closure Gary North: The Coming Great Government Debt Default TARP Watchdogs Criticize Treasury Over Transparency Minimum Wage Hike Could Threaten Low Earners’ Jobs CalPERS, Teachers’ Retirement Loses Almost $100 Billion Guaranty’s Collapse …

Frequent content contributor Kevin A recommended this piece by Doug Casey: Street Fighting Man. It has some observations that sound a lot like what you’ve read in SurvivalBlog, such as: “I’ve long believed that this depression would not only be much different but much worse than the unpleasantness of the ’30s and ’40s. In those days, only a few people were involved in the financial markets; now almost anyone with any assets at all is a player. In those days, there were no credit cards, consumer debts, or student loans; now those things are ubiquitous. It’s true that nobody will …

Reader P.D. spotted this: Global Exposure in Financial Derivatives Surpasses One Quadrillion Dollars This was linked at the Total Investor blog: Economist Shiller Sees ‘Bad Recession,’ Stocks Could Drop Again. “Shiller says that this is a dreaded “liquidity trap.” The MOAB keeps growing: Fannie & Freddie: The most expensive bailout (Thanks to Charlie W. for the link.) From “HP” comes this piece by Mish Shedlock: Bernanke Terrified Over Commercial Real Estate, Seeks Still More Power Over Consumers Heather flagged this: Cash-strapped states raid 911 funds Items from The Economatrix: Global Exposure in Derivatives in Excess of One Quadrillion Dollars 24 …

I recently bookmarked the Total Investor blog. It is has become my favorite aggregation sites for economic and investing news. Yesterday, they featured a video clip: Marc Faber On CNBC: “Marc Faber is expecting an ‘ultimate crisis’ that will ‘clean the system. ‘If you pump money into the system and you create large fiscal deficits, you create volatility,’ Faber said’” Items from The Economatrix: Making Sense of Second Quarter Earnings, So Far “As you can see, a consumer retrenchment is happening here. And in my opinion, that is an even bigger story than the individual earnings reports or big profits …

GG sent this article by Henry Blodget: Gary Shilling: Stock Market Will Crash as US Consumers Retrench Reader HPD sent a link to a recent post by Mish Shedlock: 500,000 Will Exhaust Unemployment Benefits by September, 1.5 Million by Year-end Desert T flagged this: As Boom Times Sour in Vegas, Upward Mobility Goes Bust Summers urges Banks to Lend Mores, Says Recovery Pace ‘in doubt.‘ Americans Pay Back Debts Most Since ’52 as Jobless Spur Savings More bodies go unclaimed as families can’t afford funeral costs. (First family pets, now family members) DD Sent these three items: Subprime brokers mutate …

F.G. forwarded this news story: Bank ‘walkaways’ from foreclosed homes are a growing, troubling trend. If foresaw buyers walking away from houses, but not banks! A piece that I missed from earlier this month: Banking system like South Sea bubble, says senior Bank of England official Reader MAM sent this fascinating piece from Columbia Journalism Review: Goldman Sachs to the Forefront. The plot thickens! LJ on England spotted this: Deflation fears as the underlying rate of inflation reaches its lowest level since 1948 Items from The Economatrix: Lawmakers Blast Paulson for His Response to Crisis Philadelphia Suspends Payment of Contracts …

DD sent this article: 23 metro areas where the recession is finally coming in for a landing. It includes a fascinating animated state-by-state map showing waves of recession since 1994. Pay no attention to their conclusions about incipient recovery. They are dreaming! The current recession is not a typical dip in the business cycle. It was caused by a collapse of the global credit market. This will last a long time, and may very well become a full-blown depression. Reader KAF flagged this: CIT collapse could ripple through retail industry. They are already begging for a Federal bailout. SurvivalBlog regular …

Reader Greg C. sent this: Larry Summers, White House Economic Advisor, cites Google search as progress. Greg’s comment: “If this White House thinks that determining the fitness of the economy is as simple as looking at what people search for on Google, then we are in bigger trouble than we originally thought. I wonder if they are looking at how many people are searching for ‘Economic Meltdown’ or ‘Revolution?’” Thanks to Mark N. for this: The Next Global Financial Crisis: Public Debt. “The cloud of the global financial meltdown has not even cleared, yet another crisis of massive proportions looms …

Some impeccable logic from Vice President Joe Biden: ‘We Have to Go Spend Money to Keep From Going Bankrupt’ From Greg C.: Foreclosures at record high in first half 2009 despite aid Frequent content contributor Karen H. sent the following items: Port of Long Beach imports down 28.4% Foreclosures rise 15% in the first half of 2009 Dem health RX a Poi$on Pill in NY – Terrifying 57% Tax looms for biggest earners. Social Security spends $700,000 on Phoenix Conference Industrial Production down 13.6% Map of Hardest Hit Regions of Unemployment in the U.K. CIT moving toward bankruptcy. Verleger Sees …

Reader IJS flagged this: Ron Paul: Obama Will ‘Destroy the Dollar’ Jim Sinclair (of JS Mineset) mentioned this chart posted at Contrary Investor, showing levels of derivatives exposure. Jim Sinclair raises and interesting question: Where does Goldman Sachs actually have the majority of their derivatives plays? And this chart is also illuminating. In the same piece, Sinclair included a link to this: Mobius Says Derivatives, Stimulus to Spark New Crisis. I have been warning folks for years that the derivatives market is like a ticking time bomb! A full-scale derivatives implosion could make the current economic crisis seem trivial, by …

From frequent content contributor GG: Commodities market is the place to be, says Jim Rogers. Rogers describes Ben Bernanke: “He’s an idiot.” Reader HPD mentioned this piece by Robert P. Murphy: Mish Should Ditch His Deflation Fears Who’s getting hit most by layoffs? LA mayor: City will pay costs from Jackson event. How can Los Angeles justify this expense, given their fiscal situation? Struggling Landlords Leaving Repairs Undone GG sent this: Federal tax receipts down 31% in Second Quarter Items from The Economatrix: Brand Name Companies Go Bankrupt Obama Says Unemployment Will Increase for Months How jobless numbers will respond …