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AP NEW YORK (AP) — More Americans will hit the road this holiday weekend than a year ago. And they’ll have a bit more money to spend thanks to lower gas prices. Memorial Day kicks off the summer travel season, and since pump prices never reached $4 or $5 a gallon, as feared, economists says travelers are likely to dine out or shop more once they pull off the road. About 30.7 million [...] By: Binyamin Appelbaum Ernest Markey lost his stone-cutting business in 2009. He then sold his home for half a million dollars less than its value at the peak of the housing bubble and moved with his wife, Marie, to a smaller home in a less affluent suburb. They gave up two new cars and bought one. Used. The Markeys have since patched together a semblance of their old life, [...] As President Obama campaigns for more government spending-a.k.a. his jobs plan-new unemployment claims provide fresh evidence the economy is stalling and in danger of slipping into a second recession. Big government could easily take unemployment above 15 percent and create a hole too big to ascend. New jobless claims for the week of September 10 rose to 428,000, up from 417,000 the previous week. Having [...] If there is so much demand for treasuries that the 10Y yeild is below 2.6%, why do we need to print?Short version: The Fed buys the banks’ toxic assets and pays the banks interest on the banks’ reserves to recapitalize the banks, which the banks use to buy Treasury bonds. This is to: Hide the fact that all the banks are insolvent (the FDIC doesn’t even have the money to close insolvent banks); No matter QE2 or increasing money supply, without velocity (lending/borrowing) of money, will do little, in a deleveraging Economy with credit contraction. Pushing harder on a string doesn’t change the result! QE, ZRP, HAMP, Cash for Clunkers, credit for this or that, stimulus etc CANNOT cure the INSOLVENCY! Private Economy has been emasculated by Govt, interference, picking winners/losers is currently dysfunctional. Imprudent is rewarded and prudent get punished! Private Economy(small businesses) and [...] |
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