The housing bubble hangover, part 2
A booming ‘shadow inventory’ in the housing market is almost certain to bring another wave of falling prices and another round of Federal Reserve stimulus.
Time runs out for 1.2 million on unemployment
With her unemployment benefits coming to a halt, Miriam Cintron is forced to make a difficult choice between health insurance and daily expenses.
UN report: Abandon the U.S. dollar
A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.
“The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency,” the U.N. World Economic and Social Survey 2010 said.
Consumer Confidence Index plummets to 52.9 in June; Lowest numbers since March
U.S. consumers are increasingly worried about jobs and the economy, the Conference Board said Tuesday, as it reported that its consumer confidence index plummeted to 52.9 in June — the lowest level since March — from a downwardly revised 62.7 in May.
Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion
For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg.
The Third Depression
Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.
Derivative Monster: Alive and Kicking Despite Reforms
Anyone who thinks the new financial reform law will save us from the next debt disaster must be dreaming. Here are the facts…
G-20 World Leaders Agree to Cutting Deficits in Half by 2013
The wealthiest of the Group of 20 countries said they would halve their government deficits by the year 2013 and “stabilize” their debt loads by 2016, a signal to international markets and domestic political audiences they are taking seriously the need to wean themselves from stimulus spending.
US state budget crises threaten social fabric
The small southern California city of Maywood has hit on a unique solution to its budget crisis. Crushed by the recession and falling tax revenues, the city is disbanding its police force and firing all public sector employees.
Consumer spending, incomes edged up in May
Americans spent a little more in May but not enough to speed along the economic recovery.
Consumer spending rose 0.2 percent last month after no change in April, the Commerce Department said Monday. Incomes rose for the sixth time in seven months, boosting household finances and potentially providing fuel for greater future spending.
Geithner says US can ‘no longer drive global growth’
US Treasury Secretary Timothy Geithner has told the BBC that the world “cannot depend as much on the US as it did in the past”.
He said that other major economies would have to grow more for the global economy to prosper.
He also played down any differences in policy between the US and Europe regarding deficit reduction.
Mr Geithner was speaking in Washington ahead of G8 and G20 meetings this weekend in Toronto.
New home sales plunge to lowest level on record
Sales collapsed a record 33 percent to an annual pace of 300,000 last month from April, less than the median estimate of economists surveyed by Bloomberg News and the fewest in data going back to 1963, figures from the Commerce Department showed today in Washington. Demand in prior months was revised down.
Greenspan Says U.S. May Soon Reach Borrowing Limit
By Jacob Greber June 18 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan said the U.S. may soon face higher borrowing costs on its swelling debt and called for a “tectonic shift” in fiscal policy to contain borrowing. “Perceptions of a large U.S. borrowing capacity are misleading,” and current long-term bond yields are masking America’s debt […]
Jobless claims rise sharply to 472,000
The number of people filing new claims for jobless benefits jumped last week after three straight declines, another sign that the pace of layoffs has not slowed.
Russia to Buy Canadian, Aussie Dollars for First Time
Russia may add the Australian and Canadian dollars to its international reserves for the first time after fluctuations in the U.S. dollar and euro.
Treasury Dept: China’s US govt debt holdings hit 2010 high
China’s holdings of US debt climbed to the highest level this year, the US Treasury said Tuesday even as Beijing stepped up attacks on the United States for its burgeoning debt.
8 Traits for Financial Success
Did you know that when you look at the top 30% of the population of America in terms of wealth and success, nine out of 10 of those folks weren’t there a decade ago? That’s one of the things I learned in conducting a study of 5,000 Americans for my book “The Difference.”
Martin Weiss: Glimpses of the End Game
Anyone not blinded by greed can plainly see the sick cycle we’re in: First, the government helps create a great asset bubble. Next, the government-created bubble bursts under a dark cloud of hardship for millions of Americans, and …
Fannie-Freddie Fix at $160 Billion With $1 Trillion Worst Case
Fannie and Freddie, now 80 percent owned by U.S. taxpayers, already have drawn $145 billion from an unlimited line of government credit granted to ensure that home buyers can get loans while the private housing-finance industry is moribund.
Obama Requests Another $50 Billion in State and Local Aid
Concern over the nation’s mounting debt could snarl the passage of President Barack Obama’s proposal to provide more aid to state and local governments hit by the economic downturn.
Home repossessions hit record high in May
U.S. foreclosure activity fell in April as lenders repossessed homes at a record pace but started far fewer new actions against struggling homeowners, signaling a plateau in loan failures, RealtyTrac said on Thursday.
U.S debt to rise to $19.6 trillion by 2015
The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.
Laffer: Tax Hikes and the 2011 Economic Collapse
People can change the volume, the location and the composition of their income, and they can do so in response to changes in government policies.
Government Jobs Account for 95% of May Job Increases
American companies hired fewer workers in May than forecast and workers dropped out of the labor force, indicating government support is still needed to spur economic growth. Private payrolls rose by 41,000, Labor Department figures showed today, trailing the 180,000 gain forecast by economists. Including government workers, employment rose by 431,000, boosted by a jump in hiring of temporary census workers. The jobless rate fell to 9.7 percent from 9.9 percent.
U.S. National Debt Tops $13 Trillion Mark
The federal government is now $13 trillion in the red, the Treasury Department reported Wednesday, marking the first time the government has sunk that far into debt and putting a sharp point on the spending debate on Capitol Hill.