Category: Economics & Investing

Economics and Investing:

Reader Greg C. found this: Treasury needs record $361 Billion April-June borrowing. (Greg’s comment: “And while we are all watching a little flu bug down south….”) From G.N.C.: Roubini: ‘Suckers Rally’ In Stocks To Fade. “It’s not a true recovery. It’s just a bear-market rally, it’s a suckers’ rally.” Steve in southern Oregon sent this item: Jim Rogers Isn’t Buying a U.S. Stock Recovery Items from The Economatrix: Chrysler Reaches Deal With Union, Fiat Before Deadline Flu could boost government intervention further From Michael Panzner’s blog: Evidence to the Contrary. “Despite all the evidence to the contrary, mainstream types keep …


Economics and Investing:

From Z.T.:Finance officials at odds over IMF funding plan Spotted over at Gold-Eagle: At the Heart of America’s Economic Problems, by Paul Mladjenovic Items from The Economatrix: Bank Industry Await Results of Stress Tests GM and Chrysler: Goodnight G-8’s First Bankruptcy “To paraphrase Churchill, the UK economy is now a disaster, wrapped in a catastrophe inside a calamity. And someone just flushed the key down the proverbial…” Volcker Punctures the Nonsense (The Mogambo Guru) The Fed’s Cash Machine Fed Says Government Ready to Save Stress-Tested Banks Microsoft Has First Quarterly Fall in Revenue in 23 Years Germany’s Slump Risks “Explosive” …


Economics and Investing:

Herb Dennenberg of the Philadelphia Bulletin warns: US Marches Toward a Financial Disaster Worse Than Anyone Thinks. (A tip of the hat to “The Other Jim R.”) GG flagged a Forbes column by Steve H. Hanke, warning that inflation will roar back with a vengeance: Fed Up Items from The Economatrix: Rush to Universities to Escape Recession GM to Default on $1 Billion Bond Payment IMF Predicts World Recession Will Deepen Morgan Stanley Reports Four-Month Losses of $1.47 Billion Geithner: Worst Trade Bust Since WWII Soaring US Budget Deficit Will Mean Billions in Bond Sales “Millions of lost jobs mean …


Letter Re: Question of Sealing Primers and JWR’s Notes on AR-10 Magazines

Sir, I want to thank you for your advice to obtain a 308 battle rifle. Last year I held off on buying one until December as I felt my AR-15s were “good enough”. I paid around $1,600 for an Armalite AR-10. That same rifle model now sells for more that $2,000 (if you can find it). I have also acquired another AR-10 lower that I am building for a “longer range” 308 rifle. I have also been purchasing a lot of Lake City once fired brass and 147 grain FMJ components and slowly reloading my ammo supply. Here is my …


Economics and Investing:

From GG: Borrowing puts UK’s AAA rating in danger after Budget 2009 Also from GG: China reveals huge rise in gold reserves JWR’s comment: Well, “huge” is a relative term. The population of Switzerland is 7.5 million, and the population of China is 1.3 billion. Yet, at 1,054 tons of gold, China’s gold horde is only slightly larger than Switzerland’s. Methinks China will be a big gold buyer in the decades to come, probably in excess of their domestic production. Items from The Economatrix: How Low Could the Stock Markets Go? 10 Charts Showing a Prolonged Global Recession Retirement Dreams …


Economics and Investing:

This headline appeared yesterday: Stress Test Data to be Released May 4th. Since the pre-release rumors have been bad, Monday, May 4th could be a key event. Be ready for turmoil in the weeks following this announcement. Have plenty of cash on hand, since it will be difficult to predict what the sheeple will do on or after May 4th–when presumably the majority of US banks will be declared insolvent. From DD: March existing home sales fall by three percent. “The results were ‘a little disappointing’ given that homes are more affordable than they’ve been in years and mortgage rates …


Economics and Investing:

From frequent content contributor G.G.: Gold rush in the suburbs as shine disappears from economy D.D. suggested this: Why the bank stress tests are bunk; The Obama team has put banks under the microscope and plans to release the results. If the findings are bad, expect more market turmoil. If they’re rosy, who’ll believe them? Some sobering news in The New York Times: I.M.F. Puts Bank Losses From Global Financial Crisis at $4.1 Trillion Items from The Economatrix: Freddie Mac CFO Apparent Suicide Global Economy Expected to Shrink this Year Leading Economist Decries Power of Wall Street “Oligarchs” Five Reasons …


Economics and Investing:

Allen C. sent this: Most Bailed Out Banks Reduced Lending Since Getting Funds KAF sent this bit of news on the continuing nationalization of US banking: U.S. May Convert Bank Bailouts to Common Stock Items from The Economatrix: GM to Cut 1,600 Jobs in Next Few Days Bank Bailout Plan’s “Stress Test” Already Causing Stress Recession Pits Small Banks Against Big Banks Drivers Paying Highest Gas Prices So Far in 2009 Expect another 20 cent rise for the summer. Geithner Defends Bank Rescue Program Amid Warnings GM, Chrysler to Get $5B More A Backdoor Nationalization: The Latest Treasury Brainstorm Will …


Economics and Investing:

News about the results of the Federal Reserve’s “Stress Test” got out, and it sent a shock wave through the financial world. The news was quite disturbing. Although with the caveat that it is not yet confirmed, I recommend reading the summary at Hal Turner’s web site. Reader “NDSS” mentioned this bit of much-needed common sense from Charles Hugh Smith: Why a 50% Drop in Housing is Not the Bottom. JWR’s comment: Anyone that thinks that the US real estate market will soon “recover” is dreaming. The peak in Alt-A and Option ARM mortgage rate resets won’t be until 2011. …


Economics and Investing:

Charley keyed in on a piece in The Atlantic, where Jeffrey Goldberg contemplates survivalism: Why I Fired My Broker. The accompanying video clip, titled “The Con Game” is quite entertaining and has some snippets about his acquaintance Cody Lundin–a survivalist and author.(Cody is the author of When All H*ll Breaks Loose: Stuff You Need To Survive When Disaster Strikes — currently around #300 in the Amazon ranks.) Here is a quote from the print article: “For the record, I don’t think the grid is buckling under the weight of consumer debt or the mistakes of AIG. But we’re in a …


Economics and Investing:

D.S. flagged this:Why There will be no other Bubble to Save us from this 40 Year Financial Bubble: From Manufacturing, Technology, and Financial Services. Real Estate Bubble. Drop in Corporate Tax Receipts D.S. also recommended an Op-Ed piece by Paul Krugman in The New York Times: Green Shoots and Glimmers Kern County, California unemployment jumps to 15.9 percent. (Thanks to JWP for the link.) Krys in Idaho sent us this article. US regulators close American Sterling Bank. Krys’s comment: “In case anyone’s counting, that’s an average of almost 1.5 banks closed every week so far this year. It is only …


Letter Re: Canadian Gun Shows–Behind The Power Curve

James, Just sending this letter as a quick update to the situation with ammunition and “black guns” or defensive weapons in Canada. Contrary to what many people think, Canada does allow citizens to get licensed and own firearms of most types. Basically anything except full auto weapons unless you previously owned one years ago and were grandfathered after that particular portion of Nazi legislation was implemented. This last weekend I was fortunate to attend Canada’s largest gun show in western Canada located in Cow Town, Calgary, Alberta. This gun show is nothing compared to the big shows across many of …


Economics and Investing:

Craig W. recommended this Don McAlvany address, in MP3 format: The Global State of Emergency Made Local Reader G.G. sent this: Capital One sounds alert over surge in credit card loss rates D.S. flagged this: A Thought for Tax Day: The Real Fiscal Crisis Is Yet to Come. The numbers cited are staggering! Items from The Economatrix: A “Copper Standard” For The World’s Currency? “China has woken up. The West is a black hole with all this money being printed. The Chinese are buying raw materials because it is a much better way to use their $1.9 trillion of reserves.” …


Cooper’s Color Codes and Bugging Out Before the SHTF, by H.I.C.

Colonel Jeff Cooper once wrote that he was born in another country. Born and raised in the US before the Great Depression, the country of his youth was no longer. It had been hijacked by pointy headed socialists with academic degrees and not a trace of common sense. At 50 years of age I not only agree, but maintain that the “New America” based upon a globalized economy, Federalized powers, and an Urban-centered society is dying. Our great country is dying and our great cities will burn in the funeral pyre. Most Americans know that survival in our great cities, …


Economics and Investing:

From G.G.: Brace For Hyper-Inflation Spotted in the Drudge Report news links: Magazine Ad Pages Decline Almost 26% in First Quarter G.G. also sent a link to yesterday’s Dilbert cartoon strip. G.G.’s comment: Dilbert is channeling [economist Gerald] Celente. Items from The Economatrix: How Consumers Can Take Smart Advantage of Falling Prices Fed Finds Faint Signs Economy Starting to Level Off Ron Paul: Audit the Fed Art Market Crashes 401(k) Losses Devastate Retirees Glamour Dims as Hecklers Hit Auto Shows Gasoline Expected to Remain Cheap this Summer Food Auctions Thrive During Recession General Growth, 2nd Largest Mall Owner, Fails Historic …