Sure, this looks different from the 1930s…but soup kitchen lines today come in the form of millions of unemployment checks that are mailed to unemployed Americans. 99 weeks worth of checks, that is.
Sep 022010
“What derailed the recovery of 1933 to 1937? The short answer is that it was a confluence of factors, a perfect storm of monetary and fiscal policy mistakes.”
Sep 022010
Remember Greece? The near-catastrophe that was averted by some swift central banking earlier this year…well, it appears that the problem still exists after-all. ECB loose money is simply pushing the problems into the future. Check out this chart of 5yr Greek CDS spreads. Just as wide as ever…Implied default probability [...]
According to Montier, bonds are pricing in a 70% probability the US becomes the next Japan.
Sep 012010
Check out the archive of Sri-Kumar’s September 1st webcast: The Double Dip is Here! LINK TO WEBCAST ARCHIVE LINK TO WEBCAST PPT PRESENTATION Share, Print or PDF
With everyone running around quoting the probabilities that we will enter a double dip, it might be worth taking 5 minutes to step back and ask if we’re already in a dreaded double-dip (or if we ever left the first dip, for that matter). Here are 6 reasons why we’re [...]
Sep 012010
For those who have heard calls that the Fed should raise short-term rates to avoid a deflationary trap, but cannot see how that could help promote growth, Bill Hester of Hussman Funds provides an explanation. He also illustrates investing tactics within such an environment, which feels more like a poker [...]
Overdose is a must see ABC /Four Corners documentary on the current financial and economic crisis as it developed over the past decade and as it is expected to evolve over the coming decade. “This is the story of the greatest financial crisis we’ll ever see…the one that’s on its [...]
Aug 312010
Retail analyst extraordinaire, Davidowitz, comments on the state of the US consumer: “The consumer is out of money….They have no jobs. We’ve got 18-and-a-half percent unemployment and underemployment. The consumer’s debt is 120 percent of disposable income…The consumer is wrecked.” Share, Print or PDF
When the value of a firm’s real estate appreciates by $1, its investment increases by approximately 6 cents. The ability to pledge collateral enhances a firm’s debt capacity, and providing outside investors with the option to liquidate pledged assets acts as a strong disciplining device on borrowers. Therefore, asset liquidation [...]
Aug 312010
Jim Rogers likes (guess what) real assets like silver, rice, natural gas, etc. Jim Rogers dislikes (guess what) central banks, governent intervention and politicians. Share, Print or PDF
The following is inspired by the rumoured defection of China’s central bank governor, Zhou Xiaochuan, over $430 billion in losses on a short US Treasury position. According to undisclosed sources, the governor was facing ‘punishment’ for the losses and fled the country. The rumor was false. True or not, as [...]
Aug 312010
“This country has very weak safety nets,” Mohamed El Erian, CEO at PIMCO, said in a radio interview today on “Bloomberg Surveillance” with Tom Keene. “It is built on the assumption that our labor markets are very flexible, that if you lose your job in California you move somewhere else, [...]
