Category: Economics & Investing

Do you remember how back in 2007 I described commercial real estate as “the other shoe to drop..”? Matt B. sent this article on how it is indeed collapsing. “Elfin” spotted this: Fed Planning Inflationary Dollar Destroying 15-Fold Increase in US Monetary Base – and then things really go bad! G.G. alerted us to the new video and and audio clips of Peter Schiff speaking at the 2009 Austrian Scholar’s Conference: “Why the Meltdown Should Have Surprised No One”. G.G. notes: “This is very entertaining. Listen closely to last 15 or so minutes for Schiff’s description of what he sees …

I spotted this linked at Drudge: White House Agenda on Track Despite Worsening Deficits. ($9.3 trillion in deficits projected!) Just as I warned, the Mother of All Bailouts (MOAB) is becoming uncontrollably self-perpetuating. (“If Industry X is deemed worthy, then why not Industries Y and Z?” Down and down we’ll go–down the road to ruin.) From reader HPD: GM, Chrysler May Need Additional Aid, Rattner Says MVR flagged this commentary from the National Post‘s Terence Corcoran: Is this the end of America? “N” mention a piece by Simit Patel, over at the Seeking Alpha blog: Fed Intervention, Market Response Confirm: …

U.N. panel says world should ditch dollar. (Kudos to Laura H. for the link.) The Appenzell Daily Bell reports: AIG world of $1.6 trillion derivatives trouble England may be unable to sell all of its bonds: UK overhauls debt issuance protocol. In related news: Dollar falls sharply on Fed statement. And, meanwhile in Japan: BoJ ramps up purchase of government bonds. Sounds like a race to the bottom, to me. (Thanks to G.G. for all three of those links.) Three More Banks Go Down: Teambank, Paola, Kansas; Colorado National Bank, Colorado Springs, Colorado; FirstCity Bank, Stockbridge, Georgia. And in the …

G.G. flagged this editorial at US News & World Report: Obama’s Out of Control Spending Dwarfs the Wasted AIG Bailout Money Markku sent this: For Sale: The $100 House Items from The Economatrix: WH: Agenda on Track Despite Worsening Deficits Growing Transatlantic Tensions on Eve of G20 Summit UK Car Production Slumps 60% Sacramento Tent City to Be Relocated US is Already Bankrupt China Backs Russia’s Call to Replace Dollar as Reserve Joel Skousen: AIG Bonus Outrage–How Insiders Will Defuse It (Excerpt) Treasury Throws $5 Billion to Auto Suppliers The Mother of All Depressions (MOAD) “The meeting of the G20 …

A recent headline grabbed my attention. It mention the “bottoming” or real estate price. That made me chuckle, because we are nowhere near the bottom yet. I did some searching, and I found a chart posted last year at the Calculated Risk blog. If you thought the subprime mortgages caused a lot of foreclosures, just wait until the Option-ARM resets peak in 2011. Methinks that things are going to get a lot worse before they get better. Reader HPD mentioned this at Forbes that quotes Peter Schiff: CPI Rises Despite U.S. Recession GG sent this: Merkel adviser warns US on …

John in Ohio forwarded this: At G20, Kremlin to Pitch New Currency. JWR’s Comment: Gee, so they propose replacing numerous un-backed fiat currencies (with free-floating values) with a single un-backed fiat currency of a “fixed” (constantly inflating) value. Cui bono? As I’ve written before: inflation is a hidden form of taxation. How do I vote for a genuine specie-backed currency? Only with a trip to my local coin shop or arms bazaar. Vote with your wallet. For our own protection, get out of paper currencies and into tangibles! From The Appenzell Daily Bell: Banks pop on talk of [FASB] accounting …

HPD sent this: Citi, Morgan Stanley look to sidestep bonus caps: report. (Your tax dollars at work.) HPD also sent: Paul O’Neill: Banks must show U.S. the money Laura H. mentioned: this WorldNetDaily piece: Montana considers return to gold, silver dollars, Proposed bill slams Fed, allows payments in precious metals Items from The Economatrix: Investors Restart Wall Street Rally GM CEO Says Bankruptcy Would Force Liquidation Congress Looking at Huge Taxes on AIG Bonuses Housing Starts Surge, Wholesale Prices Edge Up Completed Foreclosures Hit New High in February Corporate Meltdown Leaves Renters in Limbo US Mint Suspends More Production of …

Shrike sent this: The Size of Derivatives Bubble = $190,000 Per Person on Planet. Shrike’s comments: “Jim, you were uncomfortably prophetic in your September, 2006 article, predicting that derivatives would be a major problem. Until your article, I’d never even heard of the term, at least in terms of financing and markets. Not surprisingly, we still hear very little from mainstream media about them.” Reader “Parsley” mentioned an London Telegraph article that does not bode well: IMF poised to print billions of dollars in ‘global quantitative easing’. Consumer price inflation on a grand scale is a likely result Get out …

Inyokern sent this “must read” piece that compares the current collapse with 1929: Surviving the Great Collapse Mike K. spotted this telling news article: A Trashed Economy Foretold, Intake at Landfills Has Been Falling From Joan M.: Canada’s dirty subprime secret Laura H. sent this: Banks scramble to return bailout funds From Ben in Nevada: Dollar Crisis in the Making – Before the stampede

From Eric in Tennessee: China ‘worried’ about US Treasury holdings. Reader Kyle D. sent the same link. Kyle quipped: “At least they didn’t say the dreaded ‘D’ word: Default.” The Other Chris sent this: Homeowners See U.S. Taxes Rise as Property Values Sink Amid Deficits. “Gee, Wally, if property values are declining, shouldn’t our taxes be going down?” Courtesy of Jay, comes: Glenn Beck’s The Inconvenient Debt. Jay’s comment: “[In this video segment,] there is great chart presented by Glenn Beck on the US money supply since 1929. It is shocking.” DD forwarded this from MSNBC: Investors and homeowners woes …