Prepare For Depression Level Unemployment12/03/08
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Deflation has already set in and it's now realistic to start talking about another "D" word, this one being depression. Before we can use a word, we must define it. For the sake of argument, let's define depression as unemployment of 10% or greater.Looking at alternative measures of unemployment (cou...
Auto Sales Plunge To Lowest Level Since 198212/03/08
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MarketWatch is reporting Automakers post steep sales declines. Here are some of the highlights from the report.Ford, Lincoln and Mercury combined car sales fell 31.5% to 37,272 units. Ford truck sales slumped 29% to 81,546 units with sales of the flagship F-Series pickup down 18.6% to 37,911. Volvo s...
Former Treasury Undersecretary Proposes 100 Year Treasuries12/02/08
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Those not thrilled with the prospect of getting 3% for 30 years on the long bond can now entertain the possibility of getting 3% for 100 years.Peter Fisher Says Treasury Should Consider 100-Year Debt.BlackRock Inc.’s Peter Fisher said the U.S. Treasury should consider selling 100-year bonds to ease...
Search For Stimulus In A ZIRP World12/02/08
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Central bankers everywhere are Looking for Tools in a Zero Interest-Rate World.The Swiss National Bank is becoming the first central bank in Europe to learn what it’s like to live in a zero interest-rate world.“They simply don’t have much room left on interest rates” following a 100 basis-poi...
Avalanche Of Fiscal Irresponsibility Hits California12/02/08
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The California budget deficit is now $11 billion, on a path to $28 billion. Given that it's no longer possible to put this crisis off, Schwarzenegger declares fiscal emergency.With time and money running out for California, Gov. Arnold Schwarzenegger declared a fiscal emergency today and called legis...
Helicopter Ben Pulls Out Bazooka12/01/08
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Treasuries staged yet another massive rally today as Helicopter Ben imitates Paulson and pulls out his own bazooka. Inquiring minds are noting that Treasury Yields Drop to Record Lows as Bernanke Cites Buybacks.Treasuries rose, pushing yields to record lows, as Federal Reserve Chairman Ben S. Bernank...
Hedge Funds Impose Emergency Measures To Block Withdrawal Requests12/01/08
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Battered by a sinking global economy Hedge funds hit by fresh wave of withdrawals.Hedge funds have been hit by a fresh wave of withdrawals as investors search for cash, prompting more funds to impose emergency measures to block repayments.London Diversified Fund Management, one of Britain’s best-kn...
Housing Update - How Far To The Bottom?12/01/08
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Inquiring minds have been asking for another housing update. My previous update was was on February 15,2008 in Housing Bottom Nowhere in Sight. I did not remember Bernanke's comments at the time but looking back now they sure seem funny.CNBC is reporting Bernanke Expects Housing Recovery by Year End....
Gordon Brown, Alistair Darling, Mervyn King Urge Banks To Lend12/01/08
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Complete silliness reigns in the UK as Prime Minister Brown, Chancellor Darling, and BOE Governor Mervyn King Urge Banks To lend.U.K. house prices dropped to the lowest level in almost three years in November as banks starved the property market of credit, Hometrack Ltd. said.The average cost of a ho...
AXPJPM19,000 WaMu Employees Will Be Synergized Out Of A Job11/30/08
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Forbes is reporting JPMorgan Plans To Ax The WaMu Suits.Up to 19,000 employees of Washington Mutual face being laid off this weekend as JPMorgan Chase turns up the synergy on its recent acquisition.On Friday, JPMorgan Chase (JPM) said it expects to retain the 22,000 employees who work at Washington M...
ECBFNFWeekly Economic Potpourri November 29, 200811/29/08
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Every week there are a numerous headlines that are worthy of mentioning but I simply run out of time. Here are a few headline news reports of interest from the past week.Japan’s Factory Output Falls as Turmoil Hurts ExportsJapanese manufacturers reduced production in October and plan further cutbac...
Rubin's Arrogance and Denial is Appalling11/29/08
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Former U.S. Treasury secretary Robert Rubin says he's not to blame for Citi's troubles.Former U.S. Treasury secretary Robert Rubin said the near-collapse of Citigroup Inc, where he is a senior counselor, was due to the buckling financial system and not his own mistakes, according to an interview publ...
TGTMHoliday Shopping Scrooge11/28/08
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Santa Claus may be hard at work as the holidays approach, but he will find many Americans struggling with a troubled economy. A CNN Poll On Holiday Shopping is an indication of what many of us suspect: This will be the worst Christmas shopping season on record. Let's take a look.CNN Shopping PollSlow...
Europe Inflation Rate Plunges, ECB Expected to Cut 1/2 Point11/28/08
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Those pointing out the lagging nature of inflation, inflation meaning prices in this case, have called things correctly. In spite of a huge selloff in the Euro, Europe Inflation Rate Drops Most in Almost 20 Years.Europe’s inflation rate fell by the most in almost two decades and unemployment increa...
Panic In China Over Jobs, Economy, Cotton11/28/08
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The Telegraph is reporting China slashes interest rates as panic spreads.Factory workers surround a damaged police car during a protest outside Kai Da toy factory in Dongguan, China. Photo: REUTERSThe People's Bank of China cut interest rates by more than 1pc point as the economy crumbles and million...
Chesapeake Energy, Largest US Natural Gas Producer, Runs Out Of Cash11/27/08
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YahooFinance is reporting Chesapeake Energy may sell $1.8B stock to get cash.Chesapeake Energy Corp., the nation's largest producer of natural gas, seeks to raise up to $1.8 billion through common stock sales in an effort to fund its drilling and exploration activities and mitigate the impact of lowe...
BCELBO Boom Over - Ontario Teacher's Pension Plan Off The Hook11/27/08
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In the summer of 2007, the Ontario Teachers' Pension Plan agreed to buy BCE (a phone company) for an absurd price of C$52 billion ($42 billion). The deal was supposed to close December 11. Now the deal appears to be falling through over solvency issues.The Canadian Press is reporting BCE says Teacher...
Case Shiller and CAR Analysis November 2008 Release11/26/08
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California Association of Realtors C.A.R. DataThe following chart is from my friend "TC" who has been monitoring California Association of Realtors (C.A.R.) and DQNews data. C.A.R. data contains resale single family residences and new homes. DQNews data contains resale single family residences and ne...
Durable Goods Orders And Consumer Spending Plunge11/26/08
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In yet another sign the recession is steepening U.S. Durable Orders Collapse.New OrdersNew orders for manufactured durable goods in October decreased $12.7 billion or 6.2 percent to $193.0 billion, the U.S. Census Bureau announced today. This was the largest percent decrease in new orders since Octob...
Grim FDIC Quarterly Banking Profile11/26/08
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Inquiring minds are looking at the FDIC Quarterly Banking Profile for the third quarter of 2008. Here are some highlights from the report:Asset-Quality Problems Continue to Depress EarningsNet Income of $1.7 Billion is Second-Lowest Since 1990Loan-Loss Rate Rises to 17-Year HighNet Interest Margins R...
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