Category: Economics & Investing

We’ll start with some relatively good news: Oil producers running out of storage space: Glut caused by world slowdown leaves the world awash in crude. (A hat tip to Charley S.) Sean M. sent us a link to some charts sum up how bad things are getting, very succinctly: DD sent this: As markets slump, U.S. tries to halt cycle of fear. (They may say that we have “nothing to fear but fear itself”, but I don’t think it is irrational to fear tens of thousands of unemployed and hungry people that have been kicked out of their foreclosed houses. …

Vicki sent us a bit of video mirth to cheer us up, since there is more bad economic news to come: Taxpayers Clearinghouse Prize Patrol – Yes We Can! Thanks to OSOM for this: Marc Faber goes survivalist (as quoted in Bloomberg). “The best bet for investors may be to buy a farm and escape from the cities, as a prolonged recession could lead to war, as the Great Depression did.” From Bill in Ohio: The D-word: Will recession become something worse? From reader HPD: Bernanke Says U.S. May Need to Expand Bank Rescue. (Yea, the girth of the great …

Tony W. sent this: Even ‘Dr. Doom’ Is Scared: Economy Much Worse Than Roubini Predicted Bill from Ohio spotted this: 5000 Dow? 500 S&P? From Kevin A. come this sign of the times: Manhattan Apartment Buyers Abandoning Six-Figure Deposits Rather than Closing on Deals. Reader Kris N. mentioned in a recent e-mail: Over the last few weeks I have heard several politicians say that credit markets need to be opened up so Americans can start spending more to improve the economy. Is this not like Marie Antoinette proposing the solution to the peasant’s bread shortage is to have them switch …

JWR’s Introductory Comment: Gee, in light of all the following very bad economic news, can someone please send me something cheery to post? Perhaps some more articles about gun makers making record profits and building huge order backlogs? Frequent contributor HPD sent this: Brown told us not to question banks on risky practices, says City watchdog Reader “Bigbird” mentioned a piece in The Australian by Niall Ferguson with some biting criticism of Keynesian economics: The Great Repression CJB flagged this news story on the Chinese economy: China warns of unemployment risk GG sent us this one from Smart Money: Nothing …

Reader HPD recommended this: Why the U.S. Government Should be Cut Off Like a Subprime Borrower HPD also sent this bit of news, which comes as no great surprise: AIG Breakup Likely. Al H. said that he liked this Business Week interview: Jim Rogers Doesn’t Mince Words About the Crisis Items from The Economatrix: Fear of Global Depression Up as US Reveals True Extent of Decline Fresh Evidence Points to Paralysis of Global Economy 750,000 jobs were lost in US in February, worse to come Iran Threatened with Economic Meltdown Buffett: Economy Will Be in Shambles in 2009 Wall Street …

G.G. flagged this: Silver outshines gold for investors. “Sales of silver American Eagle coins have reached just over four million ounces so far in 2009, almost double the rate of last year, when sales reached 19.6 million ounces for the full year.” Pat M. forwarded this Reuters news video: Hard Times Push Brits to Bartering Frequent contributor Bill N. recommended this commentary by Paul Craig Roberts: How the US Economy Was Lost. Items from The Economatrix: Watch Now as Pension Funds Get Vaporized Ron Paul: This is an End of an Era…We Can’t Reinflate the Bubble Boomers: 30% Underwater Weak …

A picture is worth a thousand words: Graph of Four Bad Bear Markets. Based upon house prices, commercial real estate prices, and stock P/E rations, I’d say the markets have another 50% or more to fall, and the painful process may take another eight to ten years. And that is just to reach rock bottom, There may be another 10 years of climbing back up out of the hole that “Easy Al” Greenspan and his successors dug for the planet. (Link courtesy of Jesse’s Café Américain blog, and brought to our attention by SurvivalBlog reader Ben H.) Thanks to Thomas …