The Fed is pumping the US dollar out of existence. Our entire economy is being propped up by the Federal Reserve. Anyone who took Intro to Finance knows when the Fed pumps, the unemployment SHOULD DROP and inflation should rise. Yet, today, unemployment has remained at the same levels and only inflation has risen.
The yuan is surging. Economists are shortening the forecast for China to overtake the US as the largest [...]
Reckless money printing by Federal Reserve Chairman Ben Bernanke has pumped up the Dow to a brand new all-time high. So what comes next? Will the Dow go even higher? Hopefully it will. In fact, it would be great if the Dow was able to hit 15,000 before it finally came crashing down. That would give all of us some more time to prepare for the nightmarish economic crisis that [...]
After spending weeks looking at the city’s books, the independent review team released a report Tuesday saying Detroit’s deficit could have reached $900 million last fiscal year had it not borrowed enormous amounts of money. The city’s long-term liabilities, including underfunded pensions, are more than $14 billion.
Snyder has 30 days to accept or reject the review team’s findings, but there’s no statutory deadline for him to appoint an emergency manager, [...]
The housing bubble has burst, and few will emerge unscathed
Canucks thought they were safe… Think again, here we go.
Keith Roy began warning his clients about a faltering Vancouver housing market in early 2012. The realtor says he was tipped off not by industry statistics, but by chatter across backyard fences. “When you hear about a homeowner who thinks his neighbour got too much money when he sold his house, you [...]
Beware the bond bubble in 2013, many Wall Street experts think the bond bubble may be about to burst
After three decades of declines, interest rates are near rock bottom, and many Wall Street experts think the bond bubble may be about to burst.
In fact, nearly 40% of the 32 investment strategists and money managers surveyed by CNNMoney think that interest rates will begin to rise in 2013, and another 30% say [...]
TOLEDO, Ohio — There are 100 days left in what, at times, has seemed like an endless presidential election. And these are the bewildered sounds of the Undecided American, trying to decide.
“I know Obama says he has put people back to work, and I don’t dispute that,” Pam Nickel said at an outdoor shopping mall in Perrysburg, Ohio, on Tuesday. Underemployment is a big issue for her, though. “I don’t [...]
Sir Elton John should now be dead from Aids like his friends Freddie Mercury or Rock Hudson, he said on Monday. For years he was addicted to drugs and drink and put himself at high risk of contracting HIV by his behaviour.
Telling the story of his descent into cocaine-fuelled chaos to the International Aids Conference in Washington DC, he said: “This young man hit absolute rock bottom. His life was a mess, [...]
A quarter of adults in England and Wales have considered suicide, research suggests.
Suicidal thoughts are most common in those aged 45 to 54, with just over a third (31%) saying they had contemplated taking their own life, according to the research conducted by the Campaign Against Living Miserably (Calm).
While men and women are both likely to feel suicidal, more men actually commit suicide, the campaign group said.
Calm chief executive Jane [...]
When she earned the title of World’s Fattest Woman last year, Pauline Potter hit rock bottom.
Back then, the bedridden 52st mum – whose legs weigh over 10st each – entered the Guinness Book Of Records to shame herself into dieting, but instead her 10,000 calorie-a-day diet escalated.
Shockingly, she couldn’t stand and relied on her son, Dillion, 19, to take her to the toilet.
But when her ex-husband Alex saw Pauline’s record-breaking entry, he [...]
With their fortunes going out the window, Chinese local governments have been compelled to auction official luxury cars, according to the Financial Times.
This move, though unorthodox, is geared toward improving revenues that have since hit rock-bottom amid the unending slowdown.
Auctions have begun taking place far and wide spanning areas like Datong in the north and Kunming in the south. It is a nationwide affair as pressure from citizens has reached…
via Carmel Asset Management ‘s the ultimate Spanish doomsday presentation:
1. Spain’s national debt is 50% greater than the headline numbers
Spain’s debt-to-GDP balloons from 60% to 90% of GDP with regional and other debts
2. Spain’s housing prices will fall by an additional 35%
Spain built one house for every additional person added to the population during the past two decades; the fall will decrease GDP by ~2% each of the next two years
3. Spain [...]
Wolf Richter www.testosteronepit.com
Transparency International just published the results of its 2011 National Survey on Corruption in Greece, which tried to sort out the kind of bribery and petty corruption that households had to deal with in their daily lives, and the results were sobering, as they tend to be with corruption surveys—but in an unexpected way: for those asking for bribes, an outright depression has commenced.
Corruption is an issue in Greece. In [...]
We are not picking on Greece today but in the shadow of Lagarde’s (and Thomsen’s) comments on how shiny everything is in Greece but risks remain, we thought this anecdote-and-analysis discussion between RGE’s Megan Greene and CMC’s Michael Hewson was so timely as a follow-up to our previous discussion in December. From her experience in a coffee-less and book-less cafe/bookstore in Athens to a succinct perspective on debt sustainability, competitive issues, [...]
Banks to gulp half a trillion euros from ECB
Reuters – 3 hours ago.. .
By Jonathan Cable and Yati Himatsingka
LONDON (Reuters) – The European Central Bank will lend nearly half a trillion euros to banks at rock-bottom rates next week through its three-year refinancing operation, despite signs institutions already have adequate liquidity, Reuters polls showed on Monday.
A poll of more than 60 economists showed a median expectation that the ECB will [...]
NEW YORK (CNNMoney) — The besieged housing market has even further to fall before home prices really hit rock bottom.
According to Fiserv (FISV), a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.
Several factors will be working against the housing market in the [...]
Before Peter Schiff had a national reputation for calling the economic crash of last decade, he was a highly opinionated money manager from Orange County. (Recall His Interview With Us When He Predicted Home Prices Would Fall 50%?) He’s returning to Orange County on Nov. 7 for an investment chat and Q&A at 6 p.m. at the Irvine Barclay Theatre. (Details Here!) We asked Peter for his real estate outlook in [...]
Last week, we wrote that gold and gold stocks could be at – or very close to – a bottom. So far so good, as the miners rallied out of oversold conditions.
Gold found support at the 35 weeks Exponential Moving Average, and RSI held above 50. That’s a good sign so far:
Chart courtesy stockcharts.com
Sentiment in Gold is back at very low levels, which should be bullish for Gold [...]
Albert Edwards, a global strategist at Societe Generale, has been underweight stocks since 1996 and despite being met, he says, with “utter derision,” believes a fall by the S&P to 400 is “almost inevitable.”
Edwards said he has been long government bonds for the same amount of time and now feels vindicated with the yield on the 10-year Treasury having fallen from 7 percent [...]
When interest rates fell to 2 percent, Wayne Wagner of Independence decided to cash out his CD investments. Although he considers himself retired, Wagner, 84, bought some rental property and is now maintaining it to supplement his income.
Rock-bottom interest rates shored up banks, turned around the stock market and steadied the economy. They also put 82-year-old Wayne Wagner behind a lawn mower.
Wagner, a retired [...]
Joe Biden came to China, saw, and failed to conquer the locals’ ridicule. Punctuating just how “effective” Biden’s visit to China was in order to “reassure that the US is solvent” (no seriously, that;s the name of the article) is a just released article in the Securities Times by Wang Tialong, member of Chinese think tank Center for International Economic Exchanges in which he [...]
Cancer-stricken Ground Zero worker Edgar Galvis has finally received a compensation check — for zero dollars.
The 51-year-old Queens man, who suffered sinus problems and then throat cancer after months of removing toxic debris from the World Financial Center, was relieved to get a check in the mail for his court settlement with Merrill Lynch, whose offices he had cleaned.
But he was stunned when he saw the amount: [...]
This movie on the causes of the financial crisis was produced in Sweden by Henrik Devell, directed by Martin Borgs, and narrated by Johan Norberg, a Senior Fellow at Cato Institute, and a prominent libertarian and frequent guest on Stossel. It is very professionally done and entertaining. You can see it right here on The Daily Capitalist Theater. Turn your video setting up to 720p. It is a feature length [...]
Axel Merk, Portfolio Manager, Merk Funds
Which one is safer: the euro or the U.S. dollar? Before jumping to a conclusion one way or the other, let’s look at different sides of the respective coins. We have been warning for years that there may be no such thing anymore as a safe asset and investors may want to take a diversified approach to something as mundane [...]
IN THE past year American manufacturers have added almost 200,000 jobs to the payrolls (197,000 from April 2010 to April 2011 to be precise). That’s a “terrific increase,” writes Mark Doms, chief economist of the Department of Commerce, in his preview of tomorrow’s durable-goods report. It didn’t sound all that terrific to me, until I checked the numbers. It turns out that no administration has [...]
NEW YORK, N.Y. – The price of crude oil was stable Monday, dipping one cent to settle at US$112.28 per barrel on the New York Mercantile Exchange as the U.S. dollar pulled back from lows set earlier in the day..
In London, Brent crude lost 33 cents to settle at $123.66 per barrel on the ICE Futures exchange
Oil is priced in U.S. dollars, so crude tends to fall as the greenbak [...]
And so with a slight delay, one by one the bears come out of hibernation. Today, SocGen’s Albert Edwards is the first to remind us that no matter how high the Fed pushes stocks (as per Bernanke’s now own admissions of the Fed’s “third mandate”), it means exactly nothing for the economy, and the actual cash flow drivers that in a non-bizarro world validate [...]
If Americans (or other citizens) ever hope to regain some semblance of control over their monetary system, they must be able to clearly understand exactly how the federal reserve system functions and its destructive potential. People must understand that, in times of ‘loose’ monetary policy, ‘setting a target federal funds rate’ can be more accurately characterized as effectively ‘printing and giving away enough money [...]
THE OTTAWA CITIZEN AUGUST 21, 2010
This is serious. Very serious. The U.S. Federal Reserve, possibly the most powerful financial institution in the world, is on the lookout for deflation.
So what is the Fed doing? Chairman Ben Bernanke and the Federal Open Market Committee are keeping the benchmark interest rate at 0 or 0.25 per cent and have no plans to raise it. Those aren’t low interest rates. They are rock [...]
- We are now trading where we were in MARCH 2007.
- At that time, we had profits that were much higher, a “booming” finance sector, “booming” Asian economies, and “blue skies” ahead for the USA.
- Credit was expanding, housing was a “could not lose” proposition
- We were 6mths away from a new all-time high (non-tech bubble)
- People (thought) they had money to burn
- Everyone had a job
- We were in [...]