Until the US middle-class wage earner is valued and paid a wage that is commensurate with what stuff (like houses) costs, this melt-down will continue no matter how much quantitative easing or liquidity injections occur.
I’ve said from the beginning (around 2000) that outsourcing US jobs to India, China and Mexico would bite everyone in the [...]
Does anyone remember way back when Alan Greenspan intentionally burst the dot.com bubble. He kept interest rates high longer than he should have and the bubble popped. When he realized he was causing a recession, he reversed his strategy. He lowered the interest rate to 1%. Out of fear, he kept it at 1% for [...]
One thing for sure is that we are in a HUGE mess. A 1000 point swing on the DOW in one day has never been herd of in the history of the market and clearly states that there is panic on an epic proportion. Our net worth is being wiped out from under our feet [...]
NEW YORK (Dow Jones)–Steep losses Monday in bank stocks reflect the dire straits
the banking industry may face if politicians reach no agreement on the financial
rescue package.
“All of us are just numb,” said Frank J. Barkocy, the director of research at
Mendon Capital Advisors Corp. Asked if he fears more big banks might not pull
through the crisis, [...]
LONDON (MarketWatch) — Banks remained afraid to lend to each other Tuesday,
leaving money markets in a deep freeze that economists warned could lead to a
wider economic collapse.
“Money markets are in a state of extreme distress,” said Neil Mackinnon, chief
economist at ECU Group, a research firm.
The overnight London interbank offered rate, or Libor, posted a record [...]
“HONG KONG (MarketWatch) — The Federal Deposit Insurance Corp. is considering a plan to borrow funds from the U.S. Treasury Department, as its seeks to shore up its finances amid an expected wave of bank failures, according to a published report Tuesday. Funds borrowed from the Treasury would used to cover short-term cash-flow needs related [...]
In “good times” consumers shun the canned meat aisle altogether, but no more. Today, Spam sales are soaring; grocery stores can’t keep it on the shelves. Everyone is looking for cheaper ways to feed their families. The Labor Dept. assures us that core-inflation is only 4 per cent, but everybody knows it’s load of malarkey. [...]
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