MSM: Recession Will Be ‘Full-Blown Depression’: Strategist

(CNBC) – This global recession will turn into a “full-blown depression,” Nicu Harajchi, CEO of N1 Asset Management, said Friday, adding that global stimulus hasn’t come down to Main Street. Continue reading

The Biggest Bust Will Follow the Biggest Bubble

Our “Crash Alert” flag goes back up the pole…
October is almost half over. Will we get through the month without a major sell-off? Continue reading

Big Pharma Reaps Billions From Swine Flu Fearmongering

Pharmaceutical industry more than doubles its money as a consequence of the H1N1 scam Continue reading

MSM: £14billion: That’s the record amount Goldman Sachs staff will get in pay and bonuses

(DailyMail) – City bank Goldman Sachs is expected to confirm tomorrow that bonuses will smash all records in 2009, just a year after the Government rescued the financial system from oblivion. Continue reading

Student Loans are the New Indentured Servitude

The Wall Street Journal ran a post over the weekend about a new credit crunch among low income borrowers, noting it is now ‘payback time.’ What they didn’t go into is that their primary interviewee is drowning not on expensive cars loans but student loans. This former student’s debt is far from extraordinary. It is, in fact, tragically ordinary, as student loans have become the 21st century version of indentured servitude. Continue reading

US Economy: More Unemployment. Slowdown in the Pace of Job Losses

(BobChapman) – The number of Americans filing first- time claims for unemployment benefits fell last week to the lowest since January, a sign the labor market is deteriorating more slowly as the economy emerges from the recession. Continue reading

MSM: Recession Spells End for Many Family Businesses

(WSJ) – Siblings Georgia, Jimmy and John Roussos have spent most of their lives working in the kitchen of the restaurant their father opened in 1954. The eatery managed to survive a hurricane and other setbacks, but it wasn’t until this August that the recession took its toll, forcing Roussos Restaurant in Daphne, Ala., to permanently shut its doors. Continue reading

MSM: Dollar tumbles on report of its demise

(Independent) – The price of gold is surging on world markets amid fears that the old economic order based on the supremacy of the US dollar could be breaking down. Continue reading

Marx and Lenin Revisited – Paul Craig Roberts

“Capital is dead labor, which, vampire-like, lives only by sucking living labor, and lives the more, the more labor it sucks.” Karl Marx
If Karl Marx and V. I. Lenin were alive today, they would be leading contenders for the Nobel Prize in economics. Continue reading

Recession Is Over; Depression Has Just Begun

For the last few months I have been casting around looking for bullish data points as counterfactuals to my more bearish long-term outlook. I have found some, but not enough. If you recall, early this year, I stated that we are in depression, making the case for the ongoing downturn as a depression with a small ‘d.’

Continue reading

Dangers, Failures, Diversions and Shortfalls

(BobChapman) – The G-20 Pittsburgh Summit ended last Friday. Their official statements made for some novel and interesting reading. Continue reading

US: Over a quarter million jobs lost in September

The US unemployment rate reached 9.8 percent and the economy lost 263,000 jobs in September, according to figures released Friday by the Labor Department. The latest figures undermine claims of an imminent economic recovery and point to the likelihood that the US economy will remain mired in recession for the foreseeable future. Continue reading

Video: Marc Faber and Nouriel Roubini

(CNBC) – Squawk Box – October 1st, 2009 Continue reading

CAUTION: Crash/Collapse Dead Ahead Say Faber, Rogers, Dent and Celente

After a massive upswing in US stocks over the last six months, the recent rally may finally be coming to an end. It seems that the trend of rising stocks on bad or better than expected news may be in a reversal, as evidenced by market participants’ caution over the last couple of weeks. For those that follow contrarian investors like Marc Faber, Jim Rogers, Gerald Celente and Harry Dent, this should come as no surprise. Continue reading

MSM: U.S. Debt Crisis May Cause ‘Fall of Rome’ Scenario, Duncan Says

(Bloomberg) – U.S. budget deficits will continue to pile up in the next decade, eventually reaching an unsustainable level that may result in an economic collapse, according to Richard Duncan, author of “The Dollar Crisis.” Continue reading

US Census Bureau report: 40 million living in poverty

The overall poverty rate in the US rose to 13.2 percent in 2008, as workers across all sectors of the economy became jobless and increasing numbers of families were forced into destitution, according to a new government report. Real median household income also declined by 3.6 percent. Continue reading

Permission?

Article One – The Constitution of the United States
“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people to peaceably assemble, and to petition the Government for a redress of grievances.”
Forty five words that grant the public their rights under the Constitution, to speak freely or to peaceably assemble to protest the illegal excesses of this government. Yet to do this we are “REQUIRED” to ask “PERMISSION” from the same people that we are protesting against? Continue reading

MSM: US May Face ‘Armageddon’ If China, Japan Don’t Buy Debt

(CNBC) – The US is too dependent on Japan and China buying up the country’s debt and could face severe economic problems if that stops, Tiger Management founder and chairman Julian Robertson told CNBC. Continue reading

Video: Ron Paul – “The Federal Reserve is There to Accommodate the Politicians”

(Bloomberg) – On Wednesday, Congressman Paul appeared on Bloomberg TV to discuss the Fed’s role in creating the financial crisis, how it has destroyed our economy, and the alternative presented by a free market. Continue reading

The Economy Is A Lie, Too – Paul Craig Roberts

Americans cannot get any truth out of their government about anything, the economy included.  Americans are being driven into the ground economically, with one million school children now homeless, while Federal Reserve chairman Ben Bernanke announces that the recession is over. Continue reading

Economic Duplicity: Recession and Record Profits

In December 14, 2008, in his interview on the CBS sixty minutes show, Whitney Tilson an investment fund manager predicted that the subprime collapse was only half way of the total real estate bubble, and that the second half will begin take place around 2010 and will continue until about the year 2013. Tilson also discussed the two fancy Wall Street terms for bad mortgages namely Alt-A (Alternative-A paper) and option arms mortgages. These loans lured borrowers with teaser rates that will begin to reset this year. Continue reading

Post-Bubble Malaise – Mike Whitney

We keep hearing that “The worst is behind us”, but the spin doesn’t square with the facts. Sure the stock market has done well, but scratch the surface and you’ll find that things are not as what they seem. Continue reading

Video: Celente – Revolution next for U.S.

(September 14th, 2009) – Gerald Celente – the most trusted name in trends – sits down for an exclusive interview with RT’s Anastasia Churkina to talk about what the future holds for America during and after the Great Recession, gives advice to Obama, and forecasts the unexpected. Continue reading

Reality Receding

Now that everybody in the USA, from the janitors in their man-caves to the president addressing congress, has declared the “recession” over, is exactly the moment when what’s left of the so-called economy is most likely to implode. Continue reading

Poverty hits 1 in 8 Americans

About 2.5 million Americans slipped below the poverty line as recession and layoffs hammered the economy last year, driving poverty to its highest level since 1998, the U.S. Census Bureau reported Thursday. Continue reading

Roubini: The World Faces a “Rising Risk” of a Double-Dip Recession

Nouriel Roubini recently told The Financial Times (as summarized by Huffington Post):

The world faces a “rising risk” of a double-dip recession.

Roubini’s increasingly vocal about the risk of a recession relapse in the past few weeks… Continue reading

MSM: Greenspan says financial crisis will reoccur

(TimesOnline) – Alan Greenspan, the former US Federal Reserve chairman blamed in some quarters for not doing enough to prevent the financial crisis, has predicted that more crashes are inevitable. Continue reading

MSM: UN Says New Currency Is Needed to Fix Broken ‘Confidence Game’

(Bloomberg) – The dollar’s role in international trade should be reduced by establishing a new currency to protect emerging markets from the “confidence game” of financial speculation, the United Nations said. Continue reading

Chinese sovereign wealth fund dumping dollars for strategic investments like gold

Several reports are coming out of China that there is pressure on state-controlled organisations – notably the country’s main sovereign wealth fund, China Investment Corporation (CIC) to rapidly build investment in non-Chinese enterprises. Continue reading

Does a College Degree Protect your Career? Unemployment Rate for College Graduates Highest on Record

As many students begin applying for the 2010 academic school year, students are looking at an economic climate where endowments are hit, student loans are more restrictive, and parents have seen 529 plans sink along side their retirement plans.  The upcoming school year will be highly competitive and expensive but will it be worth it?  Now college itself isn’t a direct link to a career and many bristle when they hear about vocational training.  Yet when someone is paying $50,000 a year, you have to ask what exactly you are paying for. Continue reading

Deceitful Messages Coming Out Of Friday’s G-20 Meeting

The AP reports (via The Washington Post) that “European countries have stressed the role that excessive payouts to banking executives played in the current crisis by fueling risk-taking, and called for bonuses to be severely curbed”, which doesn’t seem to make sense with a $645+ trillion derivatives bubble. Continue reading

MSM: Food stamp list soars past 35 million – USDA

(Reuters) – More than 35 million Americans received food stamps in June, up 22 percent from June 2008 and a new record as the country continued to grapple with the worst recession since the Great Depression of the 1930s. Continue reading

MSM: Commercial Real Estate Lurks as Next Potential Mortgage Crisis

(WSJ) – Federal Reserve and Treasury officials are scrambling to prevent the commercial-real-estate sector from delivering a roundhouse punch to the U.S. economy just as it struggles to get up off the mat. Continue reading

FDIC Insured Institutions have $13.3 Trillion in Assets. 8,195 Banks and 116 Institutions Hold $10.2 Trillion of Those Assets. One out of Four Institutions Unprofitable. 1,000 Banks Will Fail or Merge.

The banking system has taken the country to the financial edge of the greatest recession since the depression.  The enormous number of bad loans floating out in the economy only complicates the unemployment situation.  When we look into the latest banking data, we realize that over 1,000 of current banks will fail or merge with a too big too fail bank.  In fact, the total number will be over 1,000 simply because the “not too big” to fail banks heavily bet on commercial real estate loans that amount to $3 trillion. Continue reading

The Spend-And-Borrow Economy – Nouriel Roubini

In the last few months the world economy has been saved from a near-depression. That feat has been achieved by a range of extraordinary government stimulus measures: In the U.S. and in China, and to a lesser extent in Europe, Japan and other countries, governments have pumped liquidity, slashed policy rates, cut taxes, primed demand and ring-fenced and back-stopped the financial system. All of this has worked, but at a cost. Governments have been spending and borrowing like never before. The question now is: how do they stop? Continue reading

MSM: Real US unemployment rate at 16 pct – Fed official

The real US unemployment rate is 16 percent if persons who have dropped out of the labor pool and those working less than they would like are counted, a Federal Reserve official said Wednesday. Continue reading

MSM: Federal Reserve loses suit demanding transparency

(Reuters) – A federal judge on Monday ruled against an effort by the U.S. Federal Reserve to block disclosure of companies that participated in and securities covered by a series of emergency funding programs as the global credit crisis began to intensify. Continue reading

Brookings “Experts” Admit Stimulus a Bust

President Obama has now been in office for over six months and despite his signature $787 billion stimulus, unemployment remains above 9 percent. Continue reading

Crisis of Solvency or “Double-dip Recession”

(WashingtonsBlog) – In an essay entitled “The risk of a double-dip recession is rising”, Nouriel Roubini affirms two important points: Continue reading

Unemployment Edges Up to Great Depression Level

Here is a chart released by the government that claims to show the percentage of unemployed people in the United States as of July, 2009. It is a fictional snapshot of the actual number of unemployed and under-employed people. Continue reading