Archive - 2009 - Blog entry

The global liquidity rally has legs to run, so don't get too flustered by Dubai's debt woes.

Macro conditions are driving micro economics. An example.

Some things I am thankful for this year: John Hussman, The Baseline Scenario, AIG, inept government regulators, and of course, Goldman Sachs. Absent these I would have nothing interesting to write about. So, without further ado, here are some interesting links for those of you who are not enticed by the Cowboys vs. Raiders game.

What's going on in Los Angeles will soon be going on across the US and developed world. Don't think for a second that tough fiscal measures won't be taken to shore up public finances. And this will certainly mean curtailing pension benefits for new and existing public sector employees.

"Easing credit standards and expanding their lending substantially ... if not offset by Federal Reserve actions, could give additional impetus to spending and, potentially, to actual and expected inflation"

While we are eating the rest of the world goes on. "They" are going to be talking about us.

The battle over corruption inside the Fed and the control of our central bank by the big city banks had been going on for a century and more. That is why the scandal and criminality of the AIG bailout demand the attention of every American. Happy Thanksgiving, BTW

A review of the 3rd Quarter FDIC Regulatory data reveals a disturbing counter trend to the recent drop in early stage delinquencies. Across almost all loan portfolios, the 3rd Quarter delinquency number is higher than the Q2 figures.

According to a report from the investment specialist, the schemes have yet to return to pre-crisis levels - although many have posted impressive gains recently.

Russian computer hackers have published emails and source code from the UN-affiliated Climate Research Unit showing profound corruption, fraud, and criminal activity. What's really behind the Copenhagen treaty?

Bottom line: The wars are unnecessary, and they are draining resources which could be used to reduce unemployment and help the economy.

I read Diana Olick's Realty Check blog on CNBC.com
on occasion. I must admit that she is considerably more credible and
serious than the vast majority of personalities to be found over there.
In her latest piece she questions the validity of the sales bump seen
in the last three existing home sales reports. She queries Lawrence
Yun, NAR's chief economist. He volunteered,

According to David Dodge, the global financial crisis dealt a severe blow to government revenues and automatically increased some expenditures. Moreover, governments undertook stimulus spending. The combined Canadian federal and provincial deficit in 2009-10 rose to about 6% of GDP, with slightly more than half of this increase due to automatic stabilizers. The comparable deficit in the US was over 10% of GDP.

Gold is up big on the suggestion that POMO may be extended, "just a little". A market slap in the face to Ben and QE. Does he get it? Nah!

Deficits don't matter . . . do they?