Category: Economic Crisis

July 3, 2010 Category: Economic Crisis

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.

June 30, 2010 Category: Economic Crisis

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.

Category: Economic Crisis

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.

June 29, 2010 Category: Economic Crisis

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.

Category: Economic Crisis

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.

June 28, 2010 Category: Economic Crisis

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.

Category: Economic Crisis

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…

Category: Economic Crisis

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.

Category: Economic Crisis

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.

Category: Economic Crisis

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.

June 25, 2010 Category: Economic Crisis

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.

June 24, 2010 Category: Economic Crisis

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.

June 18, 2010 Category: Economic Crisis

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 […]

June 17, 2010 Category: Economic Crisis

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.

June 16, 2010 Category: Economic Crisis

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.

Category: Economic Crisis

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.

June 15, 2010 Category: Economic Crisis

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.”

June 14, 2010 Category: Economic Crisis

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 …

Category: Economic Crisis

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.

Category: Economic Crisis

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.

June 10, 2010 Category: Economic Crisis

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.

June 8, 2010 Category: Economic Crisis

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.

Category: Economic Crisis

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.

June 4, 2010 Category: Economic Crisis

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.

June 3, 2010 Category: Economic Crisis

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.