By Peter Brimelow, MarketWatch
NEW YORK (MarketWatch) — When a top letter says that the “similarities to 2008 are becoming almost eerie, you just have to pay attention.
First the good news — sort of.
Last Thursday night, the Aden Forecast commented: “The stock market bounced up today and it could rise further in the short term. The Dow Jones Industrial Average DJIA +0.91% , for instance, [...]
From Madeline Schnapp, Director of Macroeconomic Research at TrimTabs
Stimulus Tactic of Increasing Government Debt to Increase GDP Broken and Unsustainable. How Long before Massive Government Debt Buildup Triggers Another Financial Shock?
Sometimes a picture is worth a thousand words. A recent post on the popular ZeroHedge financial blog compared the annualized growth in federal debt to the annualized growth in GDP in Q1 2012. ZeroHedge reported that while U.S. government debt rose [...]
Two Federal Reserve officials warned Tuesday that the U.S. could be heading for a “fiscal cliff” at year’s end if mandated tax increases and spending cuts are implemented.
Charles Evans of the Chicago Fed called the cliff a “big uncertainty” while Atlanta Fed President Dennis Lockhart said there could be a “financial shock” if markets begin to anticipate that Congress and the White House do little to address this situation.
On Monday, Goldman was the first bank to go ahead and hike its recession odds for the US from 30% to 40% (needless to say assigning probabilities to a non-linear outcome is utterly ridiculous but we’ll play along), additionally saying that both France and Germany will enter a recession shortly. Promptly, Wall Street followed. Yet despite the glaringly obvious, still nobody dares to assign [...]
People walk over a world map engraved in marble in Lisbon, September 14, 2011.
Credit: Reuters/Jose Manuel Ribeiro
By John O’Donnell and Lionel Laurent
WROCLAW,Poland/PARIS | Thu Sep 15, 2011 4:13am EDT
(Reuters) – European finance ministers have been warned confidentially of the danger of a renewed credit crunch as a “systemic” crisis in euro zone sovereign debt spills over to banks, according to documents obtained by Reuters on Wednesday.
In a report prepared [...]
Akito Fukanaga from RBS warned of a “financial shock” as banks and insurers comes under strain, and investors focus on the nexus of structured products linked to the yen.
“Preventive measures on the financial front are urgently needed. Sentiment has declined severely and there are concerns over capital erosion at financial institutions. Lower stock prices and yen appreciation are on the verge of triggering a credit crunch,” he said.
The yen’s violent [...]
What this means is the banks are going to be swamped with more foreclosures. This time not just low end homes but those which were originally in the hundreds of thousands of dollars (and sometimes millions). We already know many banks are still in trouble. In the auto industry, the government propaganda machine is telling the peasents (that’s us) that the money they were given, is being paid back, It [...]