Brett G. highlighted this news article: Roubini Predicts 20 Percent Stock Market Fall
Also from Brett: 25 Questions to Ask Anyone Who is Delusional Enough to Believe That This Economic Recovery is Real
Reader M.S.B. sent this piece by Egon von Greyerz: Hyperinflation Guaranteed
Jonathan C. forwarded this: Global Banks May Need $1.5 Trillion in Capital, Study Says
Also from Jonathan C.: FDIC Closes on Sale of $233 Million of Notes Backed by Commercial Real Estate Loans. Jonathan’s comments: Reading between the lines of the $233 Million sale is the fact that it is a 77% discount since the assets have a value of $1 billion. When banks go under the FDIC looks for a buyer of the assets. Given there are no buyers, the FDIC finds a bank who will enter into a loss share agreement footing the FDIC with 80% of any potential loss and the acquiring bank with the remaining 20%. The assets referred to in this article where not able to be disposed of in this fashion so they stayed on the books until Barclays agreed to securitize them and offer them as a type of collateralized debt obligation (CDO). You may base your assumptions as to the significance of this as you deem fit but it seems ironic that a government sponsored organization is creating securities similar to those in question in the Congressional Goldman Sachs hearings.”
Items from The Economatrix:
Economic Rifts Widen in Eurozone
European Cities On Edge of Debt Crisis
Roubini: He Said Bubble Would Burst, it Did, So What’s Next?
Danger In Numbers: The Decline of Paper Currency (The Mogambo Guru)
A Billionaire Goes All-In on Gold
UK: Banks Threaten New Recession Over Capital Ratios
Euro Crisis “Spells the End of Welfare States”
Commercial Foreclosures Pick Up Speed