For the 50 million Americans in poverty the probability of a recession is 100 percent. Growing economic divide for working class.
The probabilities of the US slipping into another official recession are growing. Don’t tell this to the 50 million people that are reportedly at the poverty level according to a new US Census report. This trend isn’t something new and it certainly is not going to be resolved overnight. We [...]
Wolf Richter www.testosteronepit.com
A pact with the devil—that’s now the official metaphor for the “unlimited” bond purchases that the European Central Bank has promised in order to bail out the holders of decomposing Eurozone debt. Bundesbank President Jens Weidmann himself referred on Tuesday to Goethe’s Faust, a play based on the ancient tale of a scholar who sells his soul in exchange for knowledge and pleasure. Part Two of that play—and it ends tragically—sketched “the [...]
“A hedge fund on the floor of our offices in New York actually started dancing around like little children shouting ‘QE3′ after the Bernanke press conference.”
This is a must read.
Guest post submitted by Chris Whalen.
QE3, Deflation And The Fed’s Money Illusion
The announcement last week by the Federal Open Market Committee that the central bank would initiate additional, open-ended purchases of residential mortgage backed securities (RMBS) was more than a little sad. Let us count [...]
Why Is Corruption So Widespread?
Liberals love Franklin Delano Roosevelt … and conservatives hate him.
But both liberals and conservatives are inspired by the wise, non-partisan words of the supreme ass-kickerTeddy Roosevelt:
Political parties exist to secure responsible government and to execute the will of the people. From these great tasks both of the old parties have turned aside. Instead of instruments to promote the general welfare they have become the tools of corrupt interests, which use them impartially [...]
The European Union is a creation of global elitists, the Bilderberg et al, in pursuit of their long-term goal of a world government. Whether this is a good thing or not depends in large part on whether politicians in positions of great power can be trusted to behave fairly and responsibly. In deciding if this is the case you have plenty of empirical evidence to assist you in making up [...]
The Global Market is being held together with the veneer of massive debt duct tape. The solution for much of the European Debt Crisiswas to simply add more debt to the current situation. Solve a debt problem with more debt in other words. All this does is delay the inevitable. The hope is that somehow GDP in these countries will grow fast enough to pay off existing debts but the Amount Of Debt Is [...]
I RECENTLY asked a group of colleagues — and myself — to identify the single most important development to emerge from America’s financial crisis. Most of us had a common answer: The age of the bank run has returned.
Since the end of World War II, economists have generally thought that runs on banks were dead, at least as a phenomenon in advanced nations. In the United States, for example, bank [...]
Many investors wish to wave a final goodbye to the disruption the Greek debt crisis has had on market valuations. Meanwhile, European politicians are already trying to move away from the dramas on the periphery and focus on restoring growth in Europe. Both impulses are understandable. Unfortunately, they are premature.
The debt reduction agreement put in place last week is the biggest sovereign restructuring ever. Yet it only goes part [...]
Dr. Paul’s solid understanding of economics through the Austrian Perspective which calls for limited government and the protection of our personal liberties qualifies him and puts him light years ahead of the other economically challenged and corrupt political puppets…
His strong position against the Federal Reserve’s role in our monetary policy, consequent bankrupting our economy and undermining of the integrity of our economic system speaks to the core problem…
Even the [...]
Former Pennsylvania Sen. Arlen Specter said Democrats should indeed put Secretary of State Hillary Rodham Clinton on the presidential ticket — but he suggested she should replace President Obama, not Vice President Joseph Biden Jr.
Asked during an interview with the Philadelphia Inquirer editorial board Tuesday whether Mrs. Clinton should replace Mr. Biden, Mr. Specter replied, “That’s the second-best alternative. A better alternative is to make Hillary the [presidential] nominee. As [...]
0. IMF does not buy sovereign debt. It makes loans to sovereigns and with highest seniority. This idea has also been completely squelched by ECB head Draghi’s most recent conference stating EZ NCB’s will not be involved (think about it: it deliberately bypasses ECB’s monetary system and European treaty).
1. Europe’s collateral crunch is a lot larger than just sovereign debt. Moving this little bit around different balance sheets would change nothing. In fact, they [...]
The Latvias Krajbanka was a formerly state owned bank where most old age pensioners still had their pension accounts. They can now withdraw $100/day max, and according to current plans I believe that all funds up to the guaranteed level are to be paid out by the state in 20 days. Anything above that level is probably lost. This simply guarantees that everyone in Latvia has been re-alerted to the [...]
WASHINGTON — The Obama administration is introducing a new program on Monday designed to lower monthly mortgage payments for more troubled homeowners.
But a key new condition in the plan would shift the financial liability for refinanced loans from Wall Street banks to the American taxpayer. And by focusing on lower payments, the program does not confront what housing experts view as the core problem [...]
t’s time to forget about Europe’s headlines for 15 minutes and refresh what is really going on in Europe, and why European leaders are scrambling day to day to come up with a solution to what is ultimately an intractable problem. Technically, the problem, as explained below, is manifested in three distinct symptoms, which exist in a self-referencing feedback loop that amplifies good input [...]
By: Nelson D. Schwartz
The New York Times
It feels eerily familiar: Stocks are plummeting. The economy is slowing. Politicians are scrambling to find solutions but are mired in disagreement.
Many Americans are wondering whether they are in for a repeat of the financial crisis of 2008.
The answer is a matter of fierce debate among economists and market experts. Many say the risks are lower today—at least in terms [...]
The awful truth about deficits and this week’s “solution” to the debt limit crisis in the United States is that government debt isn’t actually the core problem, but rather represents the costly cover-up of the bigger problem, that of a depression-level unemployment crisis.
The private sector in the United States fell into a depression in 2008 and has not emerged since then. Absent an extraordinary level of [...]
At the very core of all of our economic problems is the banking system in the US which has unquestionable acted stupidly, greedily, and abused the trust of the American people.
Had it not been for the securitization (bundling of mortgage portfolios and then splitting them into tranches and offering them as bonds) there wouldn’t have been funding for the housing boom and risk would have been retained largely at the [...]
This article could add to the burden the 2nd half will have to carry.
California foreclosure starts rise nearly 20% in February
March 15, 2010
The number of California homes pushed into the foreclosure process by banks jumped 19.7% in February from the month prior, according to a report released Monday.
…… Ã¢â‚¬Å“While efforts to slow foreclosures are clearly working, it remains unclear that anything has yet addressed the core problem of excess household [...]