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Archive for the ‘Economic Depression’ Category
There are more and more stories surfacing in regards to the effects the failing economy has had on Mainstreet, The People.
While the politicians bicker over the bailout plan, more and more individuals are opting for the violent way out, suicide.
No doubt as the economy goes down the suicide rate will increase. People are not only losing their homes but their life savings as well. Many that were on the verge of retirement are now finding themselves trying to look for a job in a market geared towards young inexperienced people who will most certainly be paid at a lower scale.
As the economy gets worse no doubt the suicide rate will increase.
Here are some of the stories arising out of the economic meltdown:
This is a MUST SEE Movie
Update – On Thursday August 21, 2008, an exclusive one-night event in select movie theatres nationwide: “I.O.U.S.A.: Live with Warren Buffett, Pete Peterson & Dave Walker.”
Find out more:
I.O.U.S.A. will play in the following cities starting August 22, 2008
(check your local listings):
Just recently the economic situation in America has become a personal issue.
I got word from family members that the unions have begun to make cut-backs on health benefits and retiree payments. One family member told me how the union came up with a gimmick to cut back on health benefits by requiring their members to live within the city’s 5 boroughs instead of the Tri-state area as was the previous arrangement. Another member informed me that her retirement check was cut by 40% and her lawyer told her there was nothing that could be done.
Apart from the dire economic condition facing Americans, many who are on the verge of retirement now face a dismal future indeed. As the economic crunch spreads out like a cancer across the country, and most mainstream media look the other way, many unions, HMO’s, corporations and employers both private and public are banning together in backroom discussions on how to cut benefits and even eliminate them if they can. Just to give you an idea as to the extremes that are being used I dug up this article from 2004, way before our current plight. Here is an excerpt:
When a deputy sheriff came to his door with a court summons, George Kneifel, a retiree in Union Mills, Ind., was mystified. His former employer was suing him.
The employer, beverage-can maker Rexam Inc., had agreed in labor contracts to provide retirees with health-care coverage. But now the company was asking a federal judge to rule that it could reduce or eliminate the benefit. More…
That was then, I can well imagine what the backroom discussions are like now.
I have been posting about the various up-coming economic disaster since last October and still the mainstream media continues to downplay it! Indymac went under a short time ago and this past week two more banks were taken over by the FDIC who, in case you don’t know have a list of 90 other financial institutions that are at risk. Think about that, 90, and the FDIC will not release the names of those institutions! Obviously they fear a run on those banks which would probably create a financial catastrophe in the nation. In the mean time the politicians, along with the mainstream media are hell-bent on keeping the people’s attention focused on two wars that should never have been, the presidential hair-splitting rhetoric that sounds like two school boys trying to see who gets the better hand at insulting the other and obviously any news on Britney Spears!
If you ask me I think we are in some really deep shit right now! I am no economist so for those who like to crunch numbers I suggest you click your way over to the Rebel Traders.Net where they have charts and numbers.
When your done there check out the article at AlterNet.Org:
Well as each day passes things just keep getting worse. Gas hits $3.60 a gallon, Crude nears $120 a barrel, refinery workers striking and militants bombing pipelines. At this rate the government will have to issue gasoline ration cards as well as food ration cards and enforce car pooling! Now OPEC warns of oil going to $200 a barrel! About 3 months ago a friend of mine had predicted this would happen within the year and sure enough here are the signs of its coming.
Go to the sites below for statistical information regarding current oil prices.
And you can also go to my post The Next Great Economic Depression which I continually update as events unfold.
I used to go to Comedy Central for laughs now I just tune into the latest government news and reports. Here is a great idea for a cartoon: A bunch of homeless families standing in snow watching a TV through a store front window at President Bush’ Small Business Summit Speech.
Listen to what Bush said.
REALLY! I wonder who these economic advisers and outside experts are and where is it that they live! Talk about being out of touch with the country. Take a look at that title “Slowdown?” Take a look at these articles:
Final note: If you are interested in what people are paying for gas around the world click here
Check out the price of gas in Iceland!
Comment left on The New York Sun
I have been writing and linking to articles about this very thing in my blog https://hunterseeker.wordpress.com/ The Next Great Economic Depression for quite some time now so it does not surprise me. For a number of years I have been expecting this to come about and in this last year( 2008 ) things have been jumping into high gear. It was inevitable that with the Fossil Fuel Wars that are raging abroad this would come to pass. Now like a virulent cancer it is spreading at a rapid rate, first through the poorer countries then the more richer ones.
HERE ARE THE LINKS TO THE VARIOUS ARTICLES:
Note: Due to the overwhelming response to this post and the volumes of information it requires I have decided to turn it into a blog. From now on all entries for this post will be made at the new blog. Click here to be re-directed.
I am no economist so I cannot speak with authority regarding our current economic situation. Instead I speak as a common man on the street, looking and observing, and what I have seen going on since 911 has caused me concern and has alarmed me increasingly as each day and each new event unfolds.
What I am doing here is merely pointing people to the sources that they can utilize to get a more correct picture of what is going on and make their own preparations.
At the outset I say don’t count on the government to provide you with the correct information. They have a monetary stake in this and will only provide you with fudged figures.
The downward spiral is already in motion and has been since 911 and probably before that.
As I said I give forth these observations as a common man of the street using history as a guide.
Below are a series of links to articles from authoritative economist who can better explain what is coming. And don’t think that this is only a national matter, it is one of global significance that all should be concerned with.
Just to sort of clear things up a bit I hunted around for some clear definition of the words recession and depression. I found it at The Wandering Economist . As he points out not everyone agrees with the definition but it is a good start. Check out his website here.
The Wandering Economist :
The technical definition of a Recession is quite simple, “Negative growth of the Gross Domestic Product of a country for a period of 2 quarters (6 months)”. While not everyone agrees with this definition (for very good reasons) it is a generally acceptable baseline. A Depression is simple an extended Recession that enters a second full year.
As I said at the beginning, I am no economist just a plain man on the street, observing and providing links to more informed sources. I would strongly suggest that anyone reading these links should contact their financial adviser before making any financial moves and bare in mind that banks insure up to $100,000 and no more. Those who are above this limit should think seriously about splitting their money in 2 or more banks. Additionally, these links are provided for INFORMATIONAL PURPOSES ONLY and are NOT MEANT to provide investment advice to anyone. For investment advice, please consult with your professional financial planner.
For those who understand French you might want to go here: http://www.leap2020.eu/
What other Blogs are saying:
Green Health. Org UK
The Big End of the American Economy?
How Would We Behave in a Great Depression?
Update: July 29, 2008
Update: July 26, 2008
FDIC Takes Over Two More Banks
Two more banks have been taken over by the FDIC. So far this year, a total of seven FDIC-insured banks have been closed.
Excerpt from the Rebel Traders Blog:
These two banks were no where near the size of IndyMac, but just the fact of additional bank failures is concerning. I am sure there are going to be more as the stresses of the credit implosion are having a severe impact on the financial institutions. And which has been evident by the record amount of money being borrowed from the Federal Reserve every day.
Mutual of Omaha Bank Acquires All Deposits of First National Bank of Nevada and First Heritage Bank, N.A.
All Insured and Uninsured Deposits Transferred to Acquiring Bank
FOR IMMEDIATE RELEASE
July 25, 2008
In Washington: Andrew Gray
In Arizona: David Barr
Cell: (703) 622-4790
First National Bank of Nevada, Reno, Nevada, and First Heritage Bank, N.A., Newport Beach, California (owned by First National Bank Holding Company, Scottsdale, Arizona), were closed today by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC) was named receiver. The FDIC entered into purchase and assumption agreements with Mutual of Omaha Bank, Omaha, Nebraska, to take over all of the deposits and certain assets of the First National Bank of Nevada, Reno (also operating as First National Bank of Arizona, which recently merged into it), and First Heritage Bank, N.A., Newport Beach, California.
The 28 offices of the two banks will reopen on Monday as branches of Mutual of Omaha Bank. All depositors, including those with deposits in excess of the FDIC’s insurance limits, will automatically become depositors of Mutual of Omaha Bank for the full amount of their deposits. Depositors will continue to be insured with Mutual of Omaha Bank so there is no need for customers to change their banking relationship to retain their deposit insurance.
Over the weekend, customers of the banks can access their money by writing checks or using ATM or debit cards. Checks drawn on the banks will be processed normally. Loan customers should continue to make loan payments as usual.
Of the 10 institutions that have failed over the past two years, this is the second time in which another bank acquired all of the failing banks’ insured and uninsured deposits. Mutual of Omaha Bank’s acquisition of all deposits was the “least costly” resolution for the Deposit Insurance Fund compared to all alternatives because the expected losses to uninsured depositors were fully covered by the premium paid for the banks’ franchises.
As of June 30, 2008, First National of Nevada had total assets of $3.4 billion and total deposits of $3.0 billion. First Heritage Bank had total assets of $254 million and total deposits of $233 million.
Customers who would like more information on today’s transactions should visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/fnbnv.html (for First National Bank of Nevada) and http://www.fdic.gov/bank/individual/failed/heritage.html (for First Heritage Bank, N.A.). They may also call the FDIC toll free about both institutions at 1-866-674-8944 and 1-800-523-8089 until 9:00 p.m. Pacific time this evening, and then 8:00 a.m. to 8:00 p.m. daily, thereafter.
In addition to assuming all of the deposits of the banks, Mutual of Omaha Bank will purchase approximately $200 million of assets from the receiverships. Mutual of Omaha Bank will pay the FDIC a premium of 4.41 percent to assume all the deposits. The FDIC will retain the remaining assets for later disposition.
First Heritage Bank, N.A., Newport Beach, California, had three branches; its clientele was comprised primarily of corporations. First National Bank of Nevada, with 25 branches, also operated as First National Bank of Arizona. It is not affiliated with National Bank of Arizona, Zions Bancorporation or its affiliates.
The cost of the transactions to the Deposit Insurance Fund is estimated to be $862 million. The failed banks had combined assets of $3.6 billion, .03 percent of the $13.4 trillion in assets held by the 8,494 institutions insured by the FDIC.
First National Bank of Nevada is the first bank to be closed in Nevada since Frontier Savings Association, Las Vegas, on December 14, 1990. The bank closed most recently in California was IndyMac Bank, F.S.B., Pasadena, on July 11, 2008. This year, a total of seven FDIC-insured banks have been closed.
# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 8,494 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
Update: July 24, 2008
Federal Minimum wage went up today July 24, 2008 to $6.55 = $262.00 per 40 hour week , $13,624.00 per year (52 weeks ). Great! That means that for a family of 2 they are still $376.00 BELOW the poverty line. You can go here for details.
Update: July 22, 2008
Beware the Unions and HMO’s
I recently got an email from a relative living in New York who informed me that the union at her job has now changed the eligibility after retirement, no doubt to save themselves money while restricting where an individual can live. According to the information I received the particular union will no longer cover medical benefits for those members who choose to live outside of the tri-state area. It use to be you could live in the tri-state area and receive coverage from them but now you must live in the 5 boroughs in order to have them cover most of the benefits.
This means that if you move out of New York’s five boroughs to try and save money on various bills and you are a member of this union you are screwed because they will no longer cover certain benefits. You would have to get additional insurance ( spend more money ). So if you work in New York I would strongly advise that you check with your union and HMO prior to moving out of state to save on grocery, gas, rent, etc., etc.
I have no doubt that these tactics are taking place in many other states as the unions and HMO’s conduct their back room tactics to squeeze as much money from their members while cutting back on benefits.
I don’t have a name for the union involved in this case, I can only say the relative works for a hospital in Manhattan. I guess there is some sort of irony in that!
I would strongly recommend that individuals cut back or eliminate those credit cards that have become a curse in these times. They tend to create an erosion of your future money before you even see it. I heard on the news ( CNN ) of an individual who owns a gas station and offer’s discounts on his gas sales if you pay cash. He saves by not having to pay the credit card fee’s and the drivers save with cheaper gas.
As for insurance I say “ Buyer Beware ”. I recall the horror stories I heard when I was young of how there were people who spent years making insurance payments only to find out that the insurance companies found a way to screw policy holders of benefits when the time to pay out arrived. No doubt there are many Katrina survivors who will attest to this in our current times.
I would also beware of the alarming trend that is taking place where the lure of free gas is being used by advertisers to get you to sign on the dotted line. Doing so in these times can be the start of an economic catastrophe. The last thing anyone needs at this right now is to sign away 3 to 5 years or more of future income!
Somehow the old concepts of our forefathers for thrift, economy and restraint seemed to have been chucked out the window in favor of spending money we don’t yet have and thereby making us slaves for years to jobs we hate to begin with! The excuse is always the same, “ If I don’t do it this way I will never have it!”. It seems to me that desire is the demon that needs to be conquered. We have become a society desirous of all things beyond our economic capacities and we pay the price! Our forefathers would be ashamed of us for our lack of economic restraint.
As for the unions, Beware! These are perilous economic times quickly approaching verbatim comparison with the period after 1929, the Last Great Economic Depression.
Update: July 16, 2008
Source: FBI investigating Indymac for fraudFrom Kelli ArenaCNN Justice Department correspondentWASHINGTON (CNN) — The FBI is investigating Indymac Bancorp for fraud, a source tells CNNThe California-based bank was taken over by federal regulators last week.Indymac’s collapse was the second-largest bank failure in U.S. history.
About 95 percent of the $19 billion in deposits in Indymac bank are insured, but that leaves $1 billion that was not covered by Federal Deposit Insurance Corp. guarantees, according to CNNMoney. According to the FDIC, 10,000 IndyMac customers could lose as much as half of that amount, or $500 million.
Food, gasoline prices on the rise
The prices of gasoline and food have risen steadily over the last decade
Inflation has made its biggest annual jump since 1991
Officials warn inflation could be problematic for the economy through 2008
Update July 15, 2008
If you are looking for the FDIC list 90 banks at risk forget it! They are keeping the list secret. The list I was able to obtain is from Research Associates of America. Obviously the FDIC does not want a rush on the banks that are on their Risk List.
No doubt someone is going to leak that list. In the mean time you have the customers of those 90 banks who are currently in a state of limbo as to what is going on. Think of it 90 banks! How many customers are at risk? How many have savings over $100,000.00, the amount insured by the FDIC? Which communities will be affected should these banks fail?
Right now wall street is in a state of nerves wondering about those 90 banks as is Washington. Here is the link to the ABC News article and below is one of the lists mentioned.
Banks in Colorado, Maryland, Georgia and California top privately-prepared lists of troubled banks being circulated on Wall Street and in Washington.
While the Federal Deposit Insurance Corporation (FDIC) is keeping secret its official list of 90 troubled banks, ABC News has obtained other lists prepared by several research groups and financial analysts.
Update July 14, 2008
I have been posting on the economic situation in the states and around the world since last October and there has been nothing but a downward spiral since then. At the rate things are going we will soon see the barrel of crude at the unheard of price of $200 a barrel and as for the bank failures they have already begun and those who did not heed the warning are now at a loss.
Some IndyMac customers are already getting the bad news:
There are, however, an estimated 10,000 IndyMac depositors who had a collective $1 billion over federal insurance limits. In an unusual move, the FDIC said it would give those customers access to 50% of their uninsured deposits. Any additional payments would be made only if the sale of IndyMac assets proved sufficient.
Don’t take my word for it, check around on the net and see what others are saying. People are already starting to become suspicious of banks in this shaky economy.
Now the Treasury has to step in to save Fannie Mae and Freddy Mac!
Update July 13, 2008
Update July 12, 2008
Well it just keeps getting worse as each day goes by and there is no promise of an end in the near future. Now it is IndyMac that has collapsed. Who will fall next as this credit crunch continues?
Here is the report by Catherine Clifford and Chris Isidore,
The fall of IndyMac
Feds seize bank – once a leading mortgage lender. It may turn out to be most expensive collapse ever. One thing is sure: The credit crisis is still with us.
By Catherine Clifford and Chris Isidore, CNNMoney.com
writers Last Updated: July 12, 2008: 10:58 AM EDT
Update: July 7, 2008
List of failed banks. This list includes banks which have failed since October 1, 2000.
How many banks are expected to fail?
“It’s our view that regulators are expecting 100 to 200 banks to fail” over the next 12 to 24 months, says Jaret Seiberg, a research analyst for the Stanford Group. Seiberg expects those failures to occur predominantly in states like Ohio, Michigan, California, and Georgia—where the construction lending market, which includes residential real estate, is expected to weaken dramatically.
Update: June 29, 2008
Here are today’s links. From what I have been able to see things seem to be getting grim in many parts of the world.
You can click on Worldwide Energy Shortages below for articles from different countries ( regarding energy ).
Update June 27, 2008
Oil above $142
It seems that there is no end to the escalating oil prices and subsequent gas price hikes that follow.
Today June 27, 2008, oil hit $142.00 per barrel and at this rate we will probably see $200 per barrel long before my original prediction of March 2009. No doubt this will have the continuing domino effect on all other things in all sectors.
Already I begin to wonder how many people are going to suffer come this winter when heating costs will skyrocket.
At the rate that oil keeps going up I suspect we might reach $172.00 by December 2008 if not more!
Well, you can read about the current oil situation below:
Oil touches record above $142
Crude prices rise as the dollar hovers near record lows and supply concerns persist.
NEW YORK (CNNMoney.com) — Oil prices surged to record high above $142 on a weak dollar and supply concerns, but later erased most of the gains. More…
Update June 12, 2008
If you think you can bear it here is THE link that will show you where the worldwide energy shortages are being felt and some of the news from those areas. Be warned, its looking grim worldwide. If you go near the bottom of the page you will find a complete list of the affected countries. Click on the link below to see the report. I would strongly suggest that you bookmark this site as you will probably have to return to it quite frequently.
Update June 5, 2008
Global Food Crisis
This is a MUST SEE series over at Geographic regarding the on-going global food crisis.
Global Food Crisis
From Kenya’s slums to India’s rice paddies to Brazil’s cafes, the skyrocketing cost of food has left no corner of the globe untouched. A special series by National Geographic News explores the myriad local faces of the world’s worst food crisis in decades.
CLICK HERE FOR SERIES
Update June 2, 2008
Well, if you came here looking for good news about the economy you landed on the wrong website. As you will see below gas, oil and food prices continue to go up causing worries in countries across the globe.
Right now I would say we are beyond the political rhetoric as to whether or not we are in a recession or the beginnings of a depression, or whatever other name you want to give it. The fact of the matter is that the whole country is hurting right now and they need solutions not more rhetoric or denials. It does not matter what part of the country you live in the fact of the matter is that the economic condition is staring you right in the face from the minute you get up until the minute you lay down to sleep. Pick up any paper anywhere in the U.S. and the economic condition is the top dog article be it in gas prices, food prices or prices on other things.
Already we are starting to see articles reminiscent of the 1929 Great Depression. People losing their homes as well as their jobs left and right. People sleeping in their cars or homeless shelters, or the street because they lost their homes. People having to decide between a gallon of gas or
a gallon of milk ( which in many parts is as or more expensive than gas ). In some places the gas pumps wont work because they were not designed to deal with the current prices. Whole companies are going under on a daily basis. There are some communities that have lost their local airports ( at last count about 30 ) and now have to travel even further for a flight out.
As has always been the case it is the nations poor that will feel and bear the brunt of this. One might ask what is the government doing to prepare for the disaster that is coming besides preparing troops for riot duty?
Well, here are the latest links. The first is to the CNN Specials index Fueling America where you will find a map showing the current prices of gas across the states. You can also click here: Map of Average Gas Prices throughout the U.S.
Click on image for Fueling America
UNITED NATIONS (AP) — World leaders at a U.N. summit have the opportunity to devise a strategy to stop skyrocketing food prices from adding millions more to the multitudes of those across the globe who already lack enough to eat.
EU food prices on the rise
BRUSSELS, Belgium (AP) — Food prices in the European Union rose by more than seven percent over the past year, almost double the rate of inflation, the EU said Monday.
Some of the EU’s poorest members, in eastern Europe, have been hardest hit. Several experienced percentage increases in food prices that were in double digits.
Stocks fumble on bank woes
Wall Street slides after a pair of financial firms announce management shakeups, and S&P cuts debt rating for Merrill, Lehman and others.
NEW YORK (CNNMoney.com) — Stocks tumbled Monday on new worries about the financial sector after S&P cut its debt rating on a number of banks, and Wachovia and Washington Mutual announced management shakeups.
Update: May 24, 2008
Analysts foresee ‘new world energy order’
PARIS, France (AP) — A leading global energy monitor fears there may not be enough oil out there to slake the world’s thirst — and is preparing a landmark forecast that could reverberate through the global economy even as major companies announce fuel-related cutbacks.
He said most demand now and in the coming decades will come from China, India and the Middle East. That is a stark shift from past decades, when the U.S. and Europe were demand-drivers.
chief economist Fatih Birol
Update: May 18, 2008
I started this post back in October of 2007 ( go to the beginning at the bottom ) and since January 2008 the price of oil ( per barrel ) has gone from $100 to $128 ( May 18, 2008 ) an average of $5.60 per month.
In October of 2007 the average per gallon cost for gas was $2.80+. Currently it is around $3.70+ ( see chart below ).
Like I have always stated I am not an economist but using simple math and not including various circumstances which are not reflected here the price of oil may hit $184 by March 2009 if not sooner. If things are bad now just imagine what it will be like then!
Then there is the problem of oil production having reached its peak as some analyst have been warning ( http://www.energybulletin.net/primer.php http://www.theoildrum.com/node/3001
http://www.lifeaftertheoilcrash.net/ ). Obviously there are many in the oil industry that are going to battle this tooth and nail just like when the tobacco company executives swore up and down that tobacco was not addictive.
Here are some numbers I have worked out ( very basic and simple )
Oil hit $100 per barrel on Jan. 2. 2008
Oil hit $128 per barrel on May 18, 2008
Total of 5 months for an average of $5.60 per month
At that rate projected oil price:
5 months from today May 18, 2008= $156.00 by October 2008
10 months from today May 18, 2008= $184.00 by March 2009
15 months from today May 18, 2008= $212.00 by August 2009
Off course that is barring any events that may affect oil production such as terrorist attacks on Saudi oil fields, a World War, etc.
Current Gas Prices and Price History
Here is todays link that relates directly to what I have posted above:
Update: May 17, 2008 12:05 p.m.
Behind the Scenes: Powering the planet
See this special investigative report Tonight and tomorrow, May 17 and 18, 2008 8 p.m. ET on CNN.
This report is relevant to the material seen on this post.
“ It was time travel, globe-trekking and fact-checking all rolled into one. It was about oil and our addiction to it, how we keep it flowing and what happens if the supply is interrupted.”
“CNN: Special Investigations Unit” is a documentary investigative series, airing Saturdays and Sundays at 8 p.m. ET, that features CNN’s top correspondents delivering in-depth hours on pressing issues currently in the news. “CNN: Special Investigations Unit” taps into the network’s worldwide resources and deep bench of top-notch journalists, including special correspondent Soledad O’Brien, chief international correspondent Christiane Amanpour, anchors Anderson Cooper and Campbell Brown, chief medical correspondent Dr. Sanjay Gupta, correspondents Abbie Boudreau, Drew Griffin and others to offer a strong brand of enterprise investigative reports.
Update: May 5, 2008 3:00 p.m.
Irresponsibility of the Bush administration
“In the long run, our economy is going to be fine. Right now we’re dealing with a difficult situation,” Bush conceded, without predicting when jittery Americans might expect a rebound.
That’s what President Bush said on Monday March 17 2008. Now here is the thing, in view of the many recorded lies ( on record, that are known ) are we being asked to risk our personal economies on his word that the economy will make a rebound? Are you willing to risk your families economic security and health on the word of a man with the worse record ever as a president.
This is actually what most people are thinking:
(CBS) This CBS News Poll finds an American public increasingly pessimistic about the economy, the war in Iraq, the overall direction of the country, and the president. Americans’ outlook for the economy is the worst it has been in four years. Most expect the price of gas to rise even further in the next few months.
That was in October 2005 ! Think about it, things are a whole lot worse yet he wants us to believe they will be better with his various economic plans!
If that were the case then why are we still seeing headlines like this one:
And there does not seem to be an end in sight. Day by day, week by week we plunge deeper into what many now feel is an economic depression.
Now people seem to be waking up out of their state of complacency and taking a good look around and they don‘t like what they see.
ECONOMIC GLOOM: A `USA Today’/Gallup Poll released yesterday found more than three in four Americans think the US is already in a recession
Wednesday, Mar 19, 2008, Page 1
US President George W. Bush said on Monday he expects the economy to ride out a financial storm that is roiling markets, with the help of his administration and the Federal Reserve.
“Asked if the US could slip into a depression lasting several years, 59 percent said it was likely and 79 percent said they were worried about it, the paper said. The poll of 1,025 adults was completed on Sunday and has a margin of error of plus or minus 3 percentage points.The poll results reflect a slide in confidence …”
It would seem that some of the people are finally admitting that we are currently headed for a major economic disaster, at least 59% and I am sure that those figures will continue to change.
The people are finally coming out of a state of denial. Let us hope that the next administration will do better though they will actually inherit the current mess being left by the Bush administration.
Update: May 2, 2008 6:11 a.m.
It would seem that Thailand along with Laos, Myanmar, Cambodia and Vietnam are about to form an OPEC style cartel, not with oil but with Rice! Rice prices have tripled in the past year. Global rice prices have risen sharply this year amid global food inflation, poor weather in some rice-producing nations and growing demand that has outstripped supply.
In the meantime the FDIC has already begun to prepare for the worse.
FDIC Bracing for Bank Failures
The Federal Deposit Insurance Corp. is taking steps to brace for an increase in failed financial institutions as the nation’s housing and credit markets continue to worsen.
U.S. Regulator Fears Wave Of Bank Failures
US bank failures could rise above “historical norms” as a weakening economy puts pressure on badly underwritten loans, particularly in commercial real estate, according to a bank regulator.
Update: April 28, 2008 9:20 a.m.
Today I have a number of links to sites that have some rather sobering accounts and statistics about the current world food and economic crisis.
I found the following note at Planetary Rescue Operations:
Boy! Talk about a mouthful in two sentences. Well here are the links:
I consider these to be MUST READ SITES for all those concerned with the current economic crisis that is gripping our world!
And if you want to see how serious this is just just check out the Google Search page for Food Riots HERE
There are currently 657,000 entries!
Update: April 26,2008 11:10 p.m.
Update April 23, 2008 3:06 a.m.
Update April 18, 2008 7:46 p.m.
It seems that everyday we get up to even higher gas prices with no end in sight. Today is no different. Another new record for oil prices was set today when it reached $117 a barrel. Gas is now close to $3.50 per gallon and diesel is above $4.00 per gallon.
Now to make matters worse some militants have taken the matter into their own hands by blowing up a pipeline in Nigeria who it so happens is a major supplier of oil to the U.S.
At this rate we are going to end up with government imposed car pooling! Check out the bad news:
Update April 18, 2008 7:20 a.m.
This one is an eye opener. Merrill Lynch is in trouble! Merrill Lynch! This is THE worlds largest brokerage.
What are the people to do if the worlds largest brokerage can’t deal with the economy? Think about it. When is the government going to admit that we are on the verge of a major economic depression? Obviously they don’t want to mention the “D” word for fears there will be a rush on banks like took place during 1929. Check this out and this was in August 2007:
Or better yet go here:
Credit crunch fears send markets reeling
Or this one:
Ambrose Evans-Pritchard: Crisis may make 1929 look like walk in the park
And yet this is what our Fearless leader has to say:
He said: “Our financial institutions are strong and our capital markets are functioning efficiently and effectively.” President Bush said the US Government will continue to monitor the situation closely.
Yea Right! Well here are today’s links.
Update April 16, 2008 7:52 p.m.
Current Price of?
Today I decided to check out prices of the usual stables that we get just to make a meal and get by. Below are the results and their links. Be aware that prices vary according to region but what is shown below gives something of an idea as to what the people face in these times.
current price of corn
Is $3.23 a bushel more than half again what it was a year ago, and beginning to bring to mind the record $5.545 a bushel set in July 1996.
current price of bread
In recent months, the cost of a loaf of bread has been rising faster than the price of a gallon of gas. It turns out not one factor, but a “perfect storm” of several, are to blame.
Current price of milk and eggs
Milk prices, for example, increased 26 percent over the year. Egg prices jumped 40 percent.
Current price of coffee
Coffee prices continued to rise into 2008 on the back of increased costs at the end of 2007, according to new figures from the International Coffee Organisation (ICO).
Current price of chicken
Could not find the current price of chicken but did find news of the poultry industry.
Record-high costs for feed continue to hammer the U.S. chicken industry and has led Pilgrim’s Pride, (PPC) the largest U.S. chicken company, to announce Wednesday that it will ax 1,100 jobs and immediately close seven U.S. facilities.
These are just some of the basic foods
Update April 15, 2008 4:22 a.m.
Crude Oil at $114 ,new average national record of $3.386 per gallon for gas, and diesel prices at the pump jumped to $4.119 a gallon and they say the economy is fine! Well click here for the latest article regarding these latest prices.
Update April 14, 2008 8:22 a.m.
Update April 6, 2008 11:16 a.m.
Huge Job Losses Set Off Recession Alarms
By JEANNINE AVERSA, AP Posted: 2008-04-04 21:12:35
WASHINGTON (AP) – It’s no longer a question of recession or not. Now it’s how deep and how long. Workers’ pink slips stacked ever higher in March as jittery employers slashed 80,000 jobs, the most in five years, and the national unemployment rate climbed to 5.1 percent. Job losses are nearing the staggering level of a quarter-million this year in just three months. More…
Update April 3, 2008 9:10 p.m.
Bernanke Says U.S. Economy May Slip Into a Recession (Update5)
April 2 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke acknowledged for the first time that a U.S. recession is possible because homebuilding, employment and consumer spending will deteriorate.
Where does this guy live? Most mainstream medias have been saying recession for some time, now the chairman of the Federal Reserve acknowledges it! The U.S. Economy MAY slip into a recession! I think you would get a better feel of the economy if you asked your local street vagrant!
Get a look at these headlines:
And the there is this report from the U.S. Department of Labor
Dated Friday, March 21, 2008
Mass Layoffs Summary
This is not counting the myriad of articles dealing with layoffs, unemployment, homeless figures, the mortgage crisis, companies that are out sourcing, moving or closing, etc., etc.
Talk about a state of government denial. I won’t even mention OIL. We all know the fiasco that is taking place there. Oil companies asking for tax cuts!
Has anyone noticed that not one government agency will mention the D word,
Depression Era Survival 101
Learn how to cut your grocery bill! Click Here
Update March 27, 2008 3:26 a.m.
Today I am putting in my two cents worth on the matter. Read and think it over.
Can It Get Worse?
It seems that where ever you look now a days there are signs of the ongoing economic slump and there is no sign of it getting better. Oil prices continue their upward rise. Stocks continue to go down on a regular basis which in turn creates a domino effect everywhere else. People have had to cut back on things they actually need like food, medicine and other necessities. Even big companies are feeling the pinch and are struggling to hang on. Just this morning the news came out that Ratan Tata, is buying into a history of trouble with his $2.3 billion cash deal, to acquire the Jaguar and Land-Rover companies from Ford. Think of that, Ford an American company, having to sell two of its companies to make ends meet and to a foreign company at that!I am certain there are a lot of deals going on behind closed doors that amount to the same but you wont here of them until they are closed. Then the pink slips go out by the bushel!
Check around! As is foreclosure are up 60% over this same period from last year. Many people are just opting to walk away from their homes and some have even gone to the (illegal ) extreme of torching their home to try to collect on the insurance. Everyday there is a new poll with new figures regarding the economy and none give any hope of any of this slowing down or stopping. Did you hear the one about the guy who robbed food only to be beaten by the store owner with a ham! Its funny as hell except that the guy robbed FOOD, not money or jewels but FOOD. That one was a short clip on CNN ( sorry, can‘t find the link for that one). Here is what the government says:
Washington — President Bush and Federal Reserve Chairman Ben Bernanke have emphasized to world economic markets that the U.S. economy remains fundamentally resilient and concerns about a slowdown in growth could be ameliorated by a short-term stimulus package.
Ameliorated! Why don’t they just say made better!
What about this one:
That one is right from the White House.
I forgot, these people are from the top 1% bracket so a $100,000.00 means nothing to them. A $100,000.00 is like toilet paper to them! Think about that the next time you have to fill the gas tank or have to decide between food and medicine. Think about it when the cop comes to nail the foreclosure notice on your door! Oh, this one is a real winner: Where to stash your cash now. What Cash! Obviously not written for the low rung hangers like you or me.
What about all that money that is being thrown away on the two wars we are currently involved in? Anyone know what that comes to? Here:
Before the war, White House economic adviser Lawrence Lindsay estimated the cost at $100 to $200 billion. So the White House got rid of him and “re-estimated” the cost at $50 to $60 billion. It’s now over $500 billion.
What would $500 billion ( and counting ) do for our economy right about now?
Can It Get Worse? You bet it can!
Update March 23, 2008 8:21 p.m.
Well, now that the Bear Stern Wake is over you might be asking yourself, who’s next? Or better still, will we know?
During the demise of Bear Stern there were reports that the Old Chief denied any reports that the bank was in any problem and insisted that they had tons of credit. Take a look at this from the Telegraph.co.uk:
Throughout the week, it was becoming increasingly apparent to Mr Cayne and his bitter competitors that the Bear – as it is known on Wall Street – was heading for meltdown. Despite Mr Cayne and his chief executive, Alan Schwartz, publicly insisting that everything was fine and that the only problem was the growing rumours, these rumours refused to die.
And this one:
The company denied the reports, insisting that it had $8 billion of ready credit lines and enough funds to meet its debt obligations for the next year without having to sell assets or take out fresh debt.
That sort of makes one wonder. Will we truly know when the next bank begins to go under? Bear Stern was the 5th largest investment bank ( according to some CNN snippets ) let that sort of settle in your mind the ask, what of the other top 4? What is their current condition? What of the other 5 in the top 10?
Like I have said before, I am no economist but I know a thing or two about people! The last thing any bank is going to do is admit they are in financial trouble. The bank exec’s could be staring bank collapse in the face and they will be in a state of denial until the axe falls!
I’m not saying that this is what will happen but I start looking at reports about banks with suspicion.
What about the latest move by Citigroup? From the deal book blogs NY Times.com:
Citi announced 4,200 layoffs, mostly in investment banking, in January. And on Thursday, The New York Times reported that an additional 2,000 will be dismissed by the end of the month. These layoffs are happening all over the world, but are likely to be concentrated in New York and London.
What about this one:
ZURICH (Dow Jones) — The Swiss bank UBS is considering cutting as many as 8,000 jobs to save costs, and will not rule out a possible split of its wealth management and investment banking business, a Swiss newspaper reported Sunday.
You might want to take a peak at some government figures. You can check this report:
though frankly I tend to stay away from government reports. You might recall what our Fearless Leader in the White House said just this past August:
You know what? Europe and the Asians are not buying into this! Check this out:
Pessimism Over U.S. Sweeps World Markets
(CBS/AP) Overseas investors, gripped by fears of a U.S. recession, dumped shares over skepticism that an economic stimulus plan U.S. President George W. Bush announced on Friday would shore up an economy battered by problems in its housing and credit markets.
That report was on January 21 2008, way before the Bear Stern Wake! I wonder what the Europeans and Asians are thinking now?
This is all food for thought while we continue to tighten our belts every morning and hear government reports about how strong the economy is while the cop tacks the foreclosure notice on your neighbors door!
Every morning I ask the same question, who’s next?
Update March 22, 2008 4:35 a.m.
In my usual morning hunt across the net I came across two very informative sites that I feel I should point out to my readers. They both have a wealth of information directly related to our present economic condition. I may lose some readers to these guys but like I said before I provide links to informative sources that might be of help to others in these uncertain times. I am not doing this for any ratings or medals! Here are todays links:
Is the Credit Crunch Over?
More bad news
Update March 18, 2008 10:31 a.m.
Well, I have been pointing to it for the longest time and finally the dreaded word is making its way onto the main stream media,
Now there are polls almost on a daily basis somewhere in the U.S. to see what the people think. Here is yet another poll:
You can also go here for another account:
Update March 17, 2008 8:31 p.m.
Poll: Three-quarters think U.S. in recession
March 17, 2008 — Updated 1912 GMT (0312 HKT)
By Paul Steinhauser
CNN Washington Bureau
(CNN) — Nearly three-quarters of all Americans think the economy is in a recession, according to a national poll released Monday.
Seventy-four percent of those questioned in a CNN/Opinion Research Corp. survey say the economy has entered a recession. More…
Sale Price Reflects the Depth of Bear’s Problems
By ANDREW ROSS SORKIN Published: March 17, 2008
In a shocking deal reached on Sunday to save Bear Stearns, JPMorgan Chase agreed to pay a mere $2 a share to buy all of Bear — less than one-tenth the firm’s market price on Friday. More…
Update March 17, 2008
Any Soup Kitchens by You Yet?
Still many ( in a state of denial ) refuse to believe we are headed towards an economic depression. Well, I suggest you take a good look around you because things do not look like their getting better in spite of the efforts of the Fed. Check in with me in another month or so and we’ll compare notes.
You might be interested in knowing that this is my most viewed post on this blog which would be an indicator as to how concerned people are regarding the economy.
Update: March 14, 2008
Oil hits record of $111 on dollar slump
ReutersThursday March 13, 11:51 am ET
By Ikuko Kao
LONDON (Reuters) – Oil rose to a fresh record high on Thursday, hitting new peaks for the seventh trading day, as a weak dollar overshadowed an increase in U.S. crude inventories.
U.S. crude for April delivery struck a new high of $111.00 a barrel. It was trading at $110.93, up $1.01 by 11:02 a.m. EDT. More…
Motorist group survey shows average fuel prices at another all-time high; West coast drivers pay the most.
March 14, 2008: 6:56 AM EDT
Gas prices sustain record run
NEW YORK (CNNMoney.com) — The nationwide average price of gasoline set another record Friday, according to the closely watched survey conducted for the motorist group AAA. More…
Note: Gas prices each $4.40 in Hawaii. Click here for that article.
Update: March 13, 2008
US gold hits $1,000 record high
March 13, 2008 8:36 AM ET
Update: March 12, 2008
While you are already here check out my other post:
Update: March 12, 2008
The Fall of the American Consumer
How much lower can consumer spending go? The malls are like mausoleums, retail clerks are getting laid off, and AOL recently featured on its welcome page the story of man so cheap that he recycles his dental floss — hanging it from a nail in his garage until it dries out.
Update: March 11, 2008
Gas Prices Rise to New National Record
By JOHN WILEN, AP Posted: 2008-03-11 11:43:45
NEW YORK (AP) – The cost of filling up the family car jumped to a record high Tuesday, adding to the challenges consumers already face with falling home values and rising food prices.
Gas prices at the pump rose overnight to a record national average of $3.2272 a gallon, according to AAA and the Oil Price Information Service. That’s a tad higher than the previous record of $3.2265, set last May. More…
Update: March 11, 2008
I found a rather interesting site during my morning hunt across the internet this morning that I thought my readers would be interested in. Here it is:
Update: March 7, 2008
Stocks Tumble Following Jobs Report
Update: March 6, 2008
Oil Prices Spike to New All-Time High
3/1 CNN Your Money: Talks of Great Depression Coming
Link viewed in video: ShadowStats,com
‘Unsustainable’ is a journalist’s investigation of a decades long storm ahead. At its heart lies a simple truth: Our minds may be infinite in desire, but the world is finite in supply.
Davos Annual Meeting 2008 – Bill Gates
Echoes of the 2008 Davos World Economic Forum
with Joe Schoendorf, Paul Saffo, and John Markoff.
Join swissnex and our esteemed panel for a debriefing and discussion on the recent 2008 World Economic Forum in Davos. Learn how today’s economic and social challenges affect our future and translate to changes in the world. All speakers are 2008 World Economic Forum participants in Davos and bring their own unique insight – swissnex
Video 1 hour 6 minutes Click here to view.
Update: March 4, 2008
Oil Above $102 After Overnight Record
By GILLIAN WONG, AP Posted: 2008-03-04 00:33:36
SINGAPORE (AP) – Oil prices held steady Tuesday in Asia after blasting overnight to a record near $104 a barrel and then falling back. More…
Update: March 3, 2008
Japan’s stock index dives 4.5 percent
2 hours, 24 minutes ago
TOKYO – Japan’s main stock index fell 4.5 percent Monday to a five-week low, tracking Wall Street’s losses at the end of last week amid persistent concerns about the U.S. economy. More…
Update: February 28, 2008
Bush Says US Not Heading for Recession
By TERENCE HUNT, AP Posted: 2008-02-28 11:11:29 WASHINGTON (Feb. 28) – President Bush said Thursday that the country is not headed into a recession and, despite expressing concern about slowing economic growth, rejected for now any additional stimulus efforts.
Update: February 27, 2008
Consumers Cut Back on Small Pleasures
By Bruce Horovitz,
USA Today Posted: 2008-02-27 12:05:52
Filed Under: Business News
(Feb. 27) – Jason Jepson works for a chi-chi yacht dealer in Newport Beach, Calif., but he’s so worried about the economy he stopped buying $1.79 PowerBars at his gym. More…
Update: February 22, 2008
Venezuela seizes 1/2 ton milk and chicken from clinic
Could this be a sign of things to come in the U.S. as well? I was not surprised when I saw this article in Reuters and while many will say it’s in Venezuela I have no doubts this same situation will befall many in the states once the Big Crunch begins. Already this week oil has gone over the $100.00 mark and all forms of merchandise will begin to go up again. Even the mainstream media can no longer avoid using the R word, recession.
Click here for the article.
Be warned, its for the technically minded!
Update: February 20, 2008
Oil Closes Above $100 for First Time
By JOHN WILEN, AP Posted: 2008-02-19 20:06:59
(Feb. 19) – Oil futures shot higher Tuesday, closing above $100 for the first time as investors bet that crude prices will keep climbing despite evidence of plentiful supplies and falling demand. At the pump, gas prices rose further above $3 a gallon. More…
Update: February 17, 2008
I spotted this article by Henry Banta at Nieman Watchdog.org and felt that it merited a link here. Click at the bottom of this post for more articles by Henry Banta.
Inequality and the sub-prime crisis
February 13, 2008
By Henry Banta
There is an obvious question that is not being asked. Perhaps out of thoughtlessness, but perhaps out of fear of the answer.
It appears widely accepted that somewhere around 1980 the share of the gross domestic product going to a very small number of the very rich exploded and the share going to everybody else began to slide downward. More…
More articles by Henry Banta.
Update: February 16, 2008
Foreclosures exact price on day workers
By EVELYN NIEVES The Associated Press February 16, 2008
GRATON, Calif. — The most desperate men park themselves on corners well before dawn, hoping for first dibs on jobs.
Most days, no one gets dibs — no one gets jobs.
Foreclosures are at record highs, home sales are at record lows and skittish consumers are cutting back on spending, all of which means contractors, construction crews and carpenters are no longer hiring. Neither are landscapers, cleaning services or homeowners. More…
2008: The Humbling of America
Posted January 2, 2008 | 02:52 PM (EST)
Over the holidays, I asked my 92 year old Grandmother what she thinks about the current economic climate. As someone who lived through the Great Depression, she feels that our society is now technologically advanced enough to avoid another economic crash. “People are more educated and innovative these days,” she explains. But can innovation and technological prowess save us before it’s too late? More…
This one is a bit dated but worth reading as the material there still deals with the current situation. There is also a list of other Bloggers worth checking out.
Co-Editor, The Crisis Papers
April 7, 2003
Update: February 14, 2008
Bernanke Warns of Worsening Economy
By JEANNINE AVERSA, AP
Posted: 2008-02-14 10:39:14
WASHINGTON (Feb. 14) – Federal Reserve Chairman Ben Bernanke told Congress Thursday that the country’s economic outlook has deteriorated and signaled that the central bank is ready to keep on lowering a key interest rate – as needed – to shore things up. More…
Update: February 8, 2008
How Deep Will the Recession Go?
By John Miller, Dollars and Sense. Posted February 8, 2008.
The economic recovery underway since late 2001 is probably over. Too bad many Americans never got to experience it.
It’s not only radical economists and cyberspace Cassandras uttering the “r”-word nowadays. Just what are we to make of it when Harvard economists, The Economist magazine, and Morgan Stanley followed by Goldman Sachs and Merrill Lynch say the economy is headed toward, or already in, a recession? More…
Update: February 5, 2008
MARKET SNAPSHOT: Stocks Tumble As Data Signal Recession
By Nick Godt
Update: February 4, 2008
Update: February 1, 2008
A lot of people have been critical of this executive order and some people feel it is no more than a propaganda council to keep the people from knowing the truth about the economy. Well here is the link so you can check for yourself, with a good magnifying glass!
After reading the above you might want to check this out, click Here
Update: February 1, 2008
The U.S. can’t dodge a slowdown
Plans to stimulate the economy are well-intentioned — but thanks to pressure on the dollar, they may be doomed.
By Colin Barr, senior writer
NEW YORK (Fortune) — The government is pulling out the stops to avert a recession this year. But there are signs that a protracted slowdown may be unavoidable – and that efforts to goose the economy may make matters worse. More…
Crude DVD $29.95
I put this entry here because it has a direct bearing with this post.
I consider this to be a MUST SEE documentary.
Updated: January 23,2008
What others are saying: Forum
Andrew Grice The Independent
January 21, 2008
By STEVEN LEE MYERS and STEVEN R. WEISMAN
Published: January 23, 2008
WASHINGTON — Even though Monday was a holiday, Ben S. Bernanke showed up early at his office at the Federal Reserve. The next day, he was planning a trip to New York. More…
By JOSEPH E. STIGLITZ
Published: January 23, 2008
AMERICA’S economy is headed for a major slowdown. Whether there is a recession (two quarters of negative growth) is less important than the fact that the economy will operate well below its potential, and unemployment will grow. The country needs a stimulus, but anything we do will add to our soaring deficit, so it is important to get as much bang for the buck as possible. The optimal package would contain one fast-acting measure along with others that could lead to increased spending if and only if the economy goes into a steep downturn.
Here are some clues that will tell you that a banking failure has occurred:
- You will not be able to get money at your local ATM.
- Limited access to money at your local bank. Probably, most banks will be forced to close however, in order to keep panic from spreading, local branches may be open to provide extremely limited services.
- Your credit cards will not be accepted.
- Most financial news will be strictly controlled and it may become illegal to say the banking system has collapsed.
- There will be several days of economic inactivity/uncertainty while the Government implements emergency economic measures.
Update: January 22, 2008
Stocks Plummet Around the World
Dow Pares Losses After Early Plunge
By MADLEN READ, AP Posted: 2008-01-22 11:59:20
ASIA MARKETS Tokyo falls 6%, Hong Kong 9% as rout continues
By V. Phani Kumar, MarketWatch
Last update: 4:32 a.m. EST Jan. 22, 2008
Japan Stock Market Plunges to 2-Year Low
Wednesday January 16, 4:22 am ET
Japan’s Main Stock Index Plunges to 2-Year Low on US Economic Concerns, Strong Yen
Those worries also drove the dollar to a 2 1/2 year low against the yen. More…
Stock market plunges deeper
14/Jan/2008 Intellasia | ATPVietnam
Jan 14, 2008 – 10:51:56 AM
Toronto Stock market plunges more than four per cent in Monday trading
David Friend, The Canadian Press
January 21, 2008 – 12:40 a.m.
The 520-point drop, which is about or 4.1 per cent of the market, trimmed more than $70 billion in value from the TSX on top of a 6.6 per cent dive last week that had already wiped out all of the market’s gains for 2007.
The losses eroded the value of stocks held by millions of Canadians either directly or in their mutual funds or pension plans. If consumers suddenly start feeling poorer because of the market drop, it could also lead to lower retail spending and further erosion in growth in the overall economy. More…
Stock Market Plunges
AP | February 27, 2007 02:16 PM
Updated: January 17, 2008
Wealthy may be next in line in U.S. home crisis
By Nick Carey Wed Jan 16, 9:15 PM ET
HINSDALE, Illinois (Reuters) – A house in this wealthy Chicago suburb is far beyond the reach of most Americans.
Unfortunately, Hinsdale may also now be too expensive for some of the people who already live here. More…
Updated: January 5, 2008
Dow tumbles over 250 points after weaker-than-expected jobs report revives recession worries. The Nasdaq plunges.
By Alexandra Twin,
CNNMoney.com senior writer January 4 2008: 6:03 PM EST
NEW YORK (CNNMoney.com) — Stocks tanked Friday, with the Dow shedding over 250 points, after a weaker-than-expected December jobs report exacerbated recession fears.
By MARTIN CRUTSINGER,
AP Posted: 2008-01-04 17:52:05
WASHINGTON (AP) – The Bush administration, faced with a deteriorating economy and a big jump in unemployment, said Friday it was considering an economic stimulus package that might include tax cuts to ward off a recession. More…
Updated: January 2, 2008
By JOHN WILEN,
AP Posted: 2008-01-02 16:07:59
NEW YORK (Jan. 2) – Crude oil prices soared to $100 a barrel Wednesday for the first time, reaching that milestone amid an unshakeable view that global demand for oil and petroleum products will outstrip supplies. More…
1/1/2008 1:53:00 PM ET
North America remains the global economy’s hub. Any assessment of the world economy in 2008 depends on the likelihood, depth and length of a US economic downturn and the magnitude of a global spillover. Any forecast is thus contingent on how we answer the following three questions. Will the financial crisis continue in 2008? Will inflation expectations rise further? Last, will there be a disorderly process of global rebalancing? If we answer all three questions with Yes, we should prepare for a global depression. More…
Nov 15, 2007 – 12:42 AM
contraction of credit
The West (US,EU, Canada) is in the midst of a gigantic and spreading credit crisis that may well to lead it into a depression, if it is not fixed soon. So far, Central bank infusions (Over $1trillion worth in a few months since July!) have been the only thing that has stopped a massive bank liquidity crisis from shutting down commerce. But the damage to credit markets thus far is so huge, and worsening rapidly, that a very bad outcome seems assured. Gregory Peters of Morgan Stanley said there is a better than 50% chance of a systemic banking crisis that will hammer credit markets at this time. More…
OMINOUS WARNINGS AND DIRE PREDICTIONS
OR WORLD’S FINANCIAL EXPERTS, PART 2
by Dudley Baker & Lorimer Wilson
March 21, 2006
The Coming Republican Economic Depression: Will the Stock Market Crash?
By Jeff Musall
Published Aug 21, 2007
Another Great Depression?
Every system has limits. No one knows exactly where these limits are. All systems are complex, and no theory deals successfully with all of this complexity. More…
Public announcement GEAB N°20 (December 15, 2007) – 16/12/2007
The rapid aggravation of the global systemic crisis as its phase of impact unfolds  has brought our researchers to estimate that the contemporary global financial system will reach a breaking phase in the course of 2008.
Crisis follow-up indicators now show that we should no longer only fear the failure of some large financial institution (and of many small ones) in the US first and the in the rest of the world (cf. GEAB N°19), but that the global financial system itself is structurally hit. More…
There are numerous articles regarding the nation and the world economy at the site listed above.
By ANDREW MARTIN
Published: December 18, 2007
Shopping at a Whole Foods Market in suburban Chicago, Meredith Estes said food prices have jumped so much she has resorted to coupons. Charles T. Rodgers Jr., an Arkansas cattle rancher, said normal feed rations so expensive and scarce he is scrambling for alternatives. In Oregon, Jack Joyce, the owner of Rogue Ales, said the cost of barley malt has soared 88 percent this year. More…
Here you will find a total of 212 articles and blog posts containing the term economic depression
Debt wobbles worldwide
The Press | Saturday, 27 October 2007
Did the world economy crash on August 9, but nobody heard it happen? JOHN McCRONE investigates whether the so-called credit crunch might have really been much more than just another fleeting economic alarm. Well, was there a crash or not?
Everybody in money circles is still talking about “credit crunch Thursday”, August 9, the day when all the big international banks simply stopped lending to each other, as jitters over the enormous extent of bad debts riddling world financial markets suddenly turned to tremors. More…