Category: Economics & Investing

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 …

E.L. sent us the link to this “must watch” seven minute video clip of from Fed Chairman Paul Volker. It has some interesting nuggets and is a somber assessment of the unfolding global economic collapse. Reader “Darth Paul” mentioned a video clip of an ex-IMF Chief Economist. Paul’s comment: “I especially got caught up at 6:40 on the counter: “Obama’s and Geithner’s choices for administration? It’s a huge problem!”, “I’m trying to be positive but my intuition from crises is that this is gonna get a lot worste…we are going down a long, dark, blind alley”.” Mark in Michigan flagged …

Steven L. sent this bit of good economic news: Cabela’s shares surge on gun sales Eric S. sent this snippet from Bloomberg : “Gold is likely to more than quadruple from the current level of $986 per ounce currently to $3,500 in 2010, he said.” Reader “Jericho Jo” flagged this article from New Zealand: European chiefs propose global rules (for world economies). A quote: “Even the global crisis and a change of Administration may not be enough to convince the US to hand over its autonomy.”I see the US as wary of giving away powers of oversight and regulation,” said …

Tamara over at the Books, Bikes. & Boomsticks blog mentioned Rick Santelli’s “rant of the year”, amidst cheers from the Chicago Merc trading pits. Stock market slump: Major stock market indexes fall to 1997 levels. Hmmm, let’s see, now adjusting for infaltion,… G.G. sent this: Foreigners Wary of Long-Term U.S. Securities. JWR’s comment: How long will it be before foreign investors start demanding higher rates of return.? Stagflation is coming, folks! I spotted this Wall Street Journal article linked at The Drudge Report: ‘Nationalize’ the Banks, Dr. Doom says a takeover and resale is the market-friendly solution. Several readers sent …