Saturday, August 27, 2011

Video: Ron Paul Says Mobs in Europe a Sign of Things Coming to US

Rep. Ron Paul (R-Texas) on the challenges in reining in government spending.

"There’s going to be an inflation tax to hit us and I am just afraid there will be people in the streets when they don’t get what they want," Paul told the FOX Business Network.

Thursday, August 25, 2011

FHFA: Home Prices in US Decline 5.9% in Second Quarter

We thought someone had already called "bottom" . . . several times already?

Have US home prices hit their bottom yet? We say no, but please add your comments below.
Home prices in the U.S. fell 5.9 percent in the second quarter from a year earlier, the biggest decline since 2009, as foreclosures added to the inventory of properties for sale.

Prices dropped 0.6 percent from the prior three months, the Federal Housing Finance Agency said today in a report from Washington. In June, prices retreated 4.3 percent from a year earlier, while increasing 0.9 percent from the previous month.

Foreclosures are boosting the supply of properties on the market and undercutting the confidence of homebuyers, sapping demand even as mortgage rates tumble to the lowest in more than half a century. The U.S. inventory of homes for sale averaged 3.7 million during the second quarter, the highest since the third quarter of 2010, data from the National Association of Realtors show. The mortgages on 6.5 million U.S. homes had late payments or were in foreclosure in June, according to Lender Processing Services Inc. in Jacksonville, Florida.
Home Prices in U.S. Decline 5.9% in Second Quarter, FHFA Says - Bloomberg Do We Have a Depression in America?

Are we still in the Great Recession, or are we now in the Greatest Depression?

Comments below.
Forget recession. Is America in the midst of a full-blown, no joking, outright depression?

“If the notion that we are merely living through the aftereffects of a mere ‘recession’ that ended in 2009 sounds somewhat ridiculous, that’s because it is,” says Richard A. Posner, a federal judge and law school lecturer based in Chicago. “If we were being honest with ourselves, we would call this a depression. That would certainly better convey both the severity of our problems, and the fact that those problems have no evident solutions.”
Do We Have A Depression In America? : Mortgage Loans, Rates, Home Buying, Selling, Foreclosures

Global Debt Meltdown on the Way?

Don't say we didn't warn you!
We are steamrolling toward a massive global debt meltdown, and at this point world leaders seem to be all out of solutions. Over the last 30 years or so, the greatest debt bubble in the history of the planet has produced unprecedented prosperity in the western world. But now that debt bubble is starting to burst and the bills are coming due. Many believe that "ground zero" for the coming global debt meltdown will be in Europe. Unlike the U.S. and Japan, the nations of the EU can't just print more money to cover their debts. Nations such as Greece, Portugal and Italy must repay their debts in euros, and those nations are rapidly getting to the point where their debts are going to overwhelm them.
3, 2, 1: Global Debt Meltdown

Dollar Slips vs Euro as Investors Await Bernanke

Waiting, waiting, waiting.
The U.S. dollar slipped versus the euro and posted a mixed performance versus other major rivals Thursday, with most major currency pairs holding tight ranges as investors remained focused on an eagerly-awaited speech by U.S. Federal Reserve Chairman Ben Bernanke.

The dollar index /quotes/zigman/1652083 DXY -0.13% , which measures the greenback against a basket of six major rivals, edged up to 73.893, compared with 73.794 in North American trade late Wednesday.
Dollar slips vs. euro as investors await Bernanke - Currencies - MarketWatch

Wednesday, August 24, 2011

US Mortgage Purchase Applications at 15-Year Low

Think the US housing market is making a comeback any time soon? Think again.

You didn't invest in real estate this year thinking we had hit a bottom, did you?
U.S. home mortgage applications for purchases fell to a nearly 15-year low last week as resurgent worries about the strength of the economy kept buyers at bay, an industry group said on Wednesday.  The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 2.4 percent in the week ended Aug.19.

The seasonally adjusted gauge of loan requests for home purchases tumbled 5.7 percent to its lowest level since December 1996, the MBA said.
Real Estate: US Mortgage Purchase Applications at 15-Year Low - CNBC

Dollar Weakens Ahead of Bernanke Speech From Jackson Hole

Thanks Ben!
The dollar was broadly weaker against most other major currencies during European trading hours Wednesday as foreign-exchange traders geared up for Federal Reserve Chairman Ben Bernanke's speech in Jackson Hole on Friday.

The euro traded recently at $1.4449, compared with $1.4441 late Tuesday in New York. The dollar was at ¥76.53 from ¥76.67, while the euro was at ¥110.56, compared with ¥110.71. Meanwhile, the pound was trading at $1.6503 from $1.6494.

Market expectations that some form of additional easing measures will be announced Friday have been building, and traders appear unwilling to place large positive or negative bets on the dollar beforehand.

Dollar Eases as Markets Await Bernanke -

Monday, August 22, 2011

21 Signs That The New Reality For Many Baby Boomers Will Be To Work As Wage Slaves Until They Drop Dead

From our new favorite website The Economic CollapseBlog:
All over America tonight, millions of elderly Americans are wondering if their money is going to run out before it is time for them to die. Those that are now past retirement age are not going to be rioting in the streets, but that doesn't mean that large numbers of them are not deeply suffering. There are millions of elderly Americans that are leading lives of "quiet desperation" as they try to get by on meager fixed incomes.
21 Signs That The New Reality For Many Baby Boomers Will Be To Work As Wage Slaves Until They Drop Dead

Wall Street "Aristocdracy" Got $1.2 TRILLION in Loans From Fed

Your tax dollars at work enriching others.
Citigroup Inc. (C) and Bank of America Corp. (BAC) were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.

By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.

Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.

“These are all whopping numbers,” said Robert Litan, a former Justice Department official who in the 1990s served on a commission probing the causes of the savings and loan crisis. “You’re talking about the aristocracy of American finance going down the tubes without the federal money.”

Wall Street Aristocracy Got $1.2 Trillion in Loans from Fed - Bloomberg

Wheat Futures Up on Drought Speculation

Food prices continue to shoot up.
Wheat rose to a two-month high in Chicago on speculation a drought in the U.S. will cut the amount of winter plants seeded this year. Little or no rain has fallen in parts of the U.S. southern Plains this year, National Weather Service data show. Dry, hot weather will persist in Kansas, Oklahoma and Texas, the largest U.S. producers of winter wheat, in the next week, Telvent DTN said. Spring-wheat growers may have been unable to plant 2.92 million acres this year because of wet weather, U.S. Department of Agriculture data show.

Wheat Rises to Two-Month High as U.S. Drought May Reduce Sowing - Businessweek

Breaking US Dollar Collapse News

What's Behind the Decline of the US Dollar?

This is one the of the best and simplest explanations we have seen:
The U.S. dollar's downward slide is accelerating as low interest rates, inflation concerns and the massive federal budget deficit undermine the currency. - Wall Street Journal, April 23, 2011
Interestingly, the Federal Reserve is responsible for, or an active participant in all three of these factors.